China Is Racing to Launch a National Stablecoin

[Peter90]

The People’s Bank of China (PBoC) is almost ready to launch its government-backed digital currency

After five years of research and system development work since 2018, the PBoC is almost ready to launch its CBDC, the deputy director of the bank’s payments unit Mu Changchun revealed at a forum last week.

Trials for the currency have been ongoing and the institution is reported to be testing multiple approaches for the project. If things proceed smoothly, the PBoC expects it could launch the currency sooner than Libra.
The latter’s recent announcement is notably reported to have influenced the PBoC’s original design for its planned CBDC.

Yang Dong — director of the Research Center of Finance Technology and Cyber Security at Renmin University of China — told China Daily that the announcement of Libra had sparked debate among Chinese regulators and motivated the project’s designers to involve more non-governmental institutions in the currency’s development and issuance process.
He stated: "Further testing is needed before officially launching the Chinese CBDC, gaining inspiration from the Libra."

While not revealing specific names, Yang indicated that the next round of CBDC trials will involve both the central bank and private- and state-owned firms and will focus on non-governmental and cross-border applications.


CBDC expected to have many positive impacts

China UnionPay chairman and former PBOC official Shao Fujun told China Daily that the CBDC “will have lots of positive impacts, including tracking the money flow in economic activities and supporting making monetary policy."
It nonetheless faces challenges such as global coordination as regards monetary and exchange rate policy, he noted.

China’s digital legal tender will be controlled by the PBoC and 100% backed by the reserves commercial institutions pay to the institution, an unnamed central bank official indicated. Citizens will be able to exchange the currency in commercial institutions.

At the forum, Mu further highlighted that currently, several different designated institutions are taking different technical routes for developing the CBDC and electronic payment infrastructure.

https://cointelegraph.com/news/china-is-racing-to-launch-a-digital-currency-ahead-of-fbs-libra

[Contagem]

The launch of the national coin of China should positively affect the interest in cryptocurrencies on the part of people and businesses. It will be interesting to see the reaction of the crypto market and the statements of experts in the field of cryptocurrencies after China launches its coin.

[Goodcat49]

With Binance Venus, Facebook Libra and this stablecoin, the era of stablecoin is coming very soon!

[Alcor]

This is very good news, which means that this state will nevertheless gradually get drawn into the cryptocurrency market. I expected about this turn of events from the Chinese government. They always developed their own path and always defended their economy well and therefore achieved significant results.
They write,  that the Chinese CBDC coin will have scalability of 300,000 transactions per second. Very good for a stable coin.

[Peter90]

With Binance Venus, Facebook Libra and this stablecoin, the era of stablecoin is coming very soon!

Don't forget Kinesis

See you tomorrow 

[bee]

I just laughed at this. What made them interested in making more stable coins?
I personally only need 1 to 3 stable coins to maintain the value of my assets from market volatility.

[Keenly]

I just laughed at this. What made them interested in making more stable coins?
I personally only need 1 to 3 stable coins to maintain the value of my assets from market volatility.

each has its own strategy and its own number of coins, to whom it is more convenient)

[Zed0X]

I would like to see how this will affect China's financial system once it's fully launched. Government officials from different countries might be following the developments as well.

I just laughed at this. What made them interested in making more stable coins?

Because Bitcoin. As the opening sentence suggests, the plan to have a government backed cryptocurrency has been set five years ago. Maybe the introduction of Libra forced them to make some changes and do it even faster.

I personally only need 1 to 3 stable coins to maintain the value of my assets from market volatility.

Unfortunately, there are a lot of traders/investors who thinks differently.

[Bobcrypto]

This is very good news, which means that this state will nevertheless gradually get drawn into the cryptocurrency market. I expected about this turn of events from the Chinese government. They always developed their own path and always defended their economy well and therefore achieved significant results.
They write,  that the Chinese CBDC coin will have scalability of 300,000 transactions per second. Very good for a stable coin.

Yeah, this is a final uturn move from China, a country once on the verge of kicking out crypto from her country. Chine once on the list of nation that were against ICO launch now trying to launch a stable coin, i think we may be expecting other countries on the haters of crypto list to join the race of stabecoin launch soon.

[Topcrypoaltfan]

actually China s new tech capital Shenzhen, just launched policy on advocating and mass constructing of 5G and Blockchain technology.
Chinese Ministry of Industry and Information Technology: ‘Promote 5G, Encourage Participation In Blockchain’

September 4th, the Ministry of Industry and Information Technology issued the “Guideline on the Development of Industrial Big Data (Draft for Comment)” to publicly acquire opinions from the public. The submissions explicitly mention the promotion of 5G, NB-IoT, to promote the deployment of IPv6, and encourage enterprises, research institutions and other entities to actively participate in key technologies such as blockchain and secure multi-party computing, reducing the risk of industrial big data circulation.

Therefore Blockchain technology is highly valued.
Shenzhen as well launched the very first 5G+Blockchain project on June, Hyper Speed ​​Network (HSN), to provides 5G+blockchain technical support.

I think once China established this, altcoin season ll come again!

related News link below
https://medium.com/hyperspeednetwork/chinese-ministry-of-industry-and-information-technology-promote-5g-encourage-participation-in-529faeaa58a6 [nofollow]

[Altsurvivalist]

I don't know much about this Coin, but I don't think we're going to be seeing it joining our buddies on the main BitCoin/Altcoins exchanges? 

[Peter90]

Yeah, this is a final u-turn move from China, a country once on the verge of kicking out crypto from her country. Chine once on the list of nation that was against ICO launch now trying to launch a stable coin, i think we may be expecting other countries on the haters of crypto list to join the race of stablecoin launch soon.

We must distinguish between cryptocurrencies altogether and un-backed, non-stable cryptos.
China’s authorities were against un-backed, non-stable cryptos, the weren't against cryptocurrencies altogether.
This is a stablecoin, backed by China’s national currency.

Bitcoin & Co. were alternative currencies to the Yuan.
This stablecoin is Yuan on the blockchain.

The Chinese Gov was against currencies which could become a competition for the Yuan.
This stance hasn’t changed.
This stablecoin is not competition to the Yuan. This is just ... crypto-Yuan.

There is another reason why China’s Gov is favourable to this stablecoin, and that is its value stability.
Governments, monetary authorities, like stability, because something stable is more easy to be controlled and managed that something unstable, volatile.

There is a third reason why China's Gov is favourable to this stablecoin, while it was not to other cryptos, and that is, that with this stablecoin there is no anonymity.

My point is this: This is not a u-turn.
When you see Govs being apparently against cryptocurrencies, it doesn't mean that they are against cryptocurrencies altogether.
Maybe they are only against a particular type of cryptos.

[Keenly]

I don't know much about this Coin, but I don't think we're going to be seeing it joining our buddies on the main BitCoin/Altcoins exchanges? 

Why?) There are a lot of Chinese, if they let them know about this coin, and they believe in it, but the coin can fly up

[mnixxo.crypto]

I am not surprised with such move. But what surprised me is that also North Korea starts to develope its own cryptocurrency.

“We are still in the very early stages in the creation of the token. Now we are in the phase of studying the goods that will give value to it,” said Cao de Benos, adding that there are “no plans to digitize the [North Korean] won for now.”

[PurpleImp]

Chine confused me. I thought they were so against crypto. I guess they only agaisnt it because they cannot control it. The communist government would want to have control on things or as much as it can possibly have like it does everything else including what you can do online and what you can play or watch. You can't even use google or facebook there you are forced to use a vpn or proxy so I guess vpn companies must make a killing off Chinese subscriptions. At least that is one good thing. If they create their own crypto currency it will make them feel more in control and they can pass laws on it and tax it with ease since it will be distributed by a government blockchain and not by the people. They are trying to centralize a decentralized currency.