The Chinese national cryptocurrency – essence and repercussions


China has outdid every country in the world when it comes to cryptocurrency regulation and control. However, the country is taking the crypto craze in its own hands and is now working to create its very own government-backed alt coin.

While the project is yet to be implemented and the launch of an actual coin is nowhere near in the recent future, it seems, the Chinese government has shed some light on the cryptocurrency project.

The information is primarily coming from sina.com.cn and CCN. The Ministry of Industry and Information Technology of China has announced that they are conducting a study to explore the viable options of creating a blockchain-based cryptocurrency. What is more, it is the China Banknote Bank Credit Card Industry Development Co, that is a major player in the ongoing research on cryptocurrencies in the country.

China, while strongly opposed to cryptocurrencies, seems to be all in favour of blockchain and the benefits of a state-owned digital coin. There is already a special Banknote Blockchain Technology Institute founded to support the studies and research.

The other promising fact that China is one of the countries with most blockchain patents in the world, with the China Boxer Blockchain Technology Research Institute applying for 22 patents alone.

Even if China is bullish of blockchain and introducing its own state cryptocurrency, many are asking what will happen to the global economy if China goes live with a government alt coin.

While it is nearly impossible to predict what the outcome will be, there are some speculations. For example, according to a UK-based forex provider, IG, after conducting a scenario analysis, shows one possibility that a Chinese cryptocurrency can increase the chance of a financial crisis occurring, as well as shaking the forex markets around the world.

One thing is sure, however. If China introduces its own state-backed alt coin, the global economy will change.

 

 

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The Chinese national cryptocurrency - essence and repercussions

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