• Blog
  • News
  • The Chinese Crypto Addiction
News

The Chinese Crypto Addiction

The central government of China is interested in having own sovereign crypto. That is why major banks started to make a study about the numeric currency which will be operated by politicians in the nearest future. People’s Bank of China continues working on the elaboration, but without any official speech about the launching and exact day of it. The fact remains to be – the digital currency soon will be national in China.

The previous year, Facebook already had a similar idea with the numeric coin Libra. However, Libra didn’t get well-wishing encouragement from the banks and authorities from all over the world. Knowing this Facebook experience, China had resolute intention to launch own centralized crypto by the end of 2019. Despite it did not happen, bank authorities continue to develop a sovereign numeric currency also in 2020.

The People’s Bank of China did not announce exact date of launching, but they made a speech about significant progress in 2019 on the development of the electronic currency. PBOC is one of the first central banks that saw a threat to China’s financial system and the need for the immediate introduction of the own virtual sovereign currency. From unofficial sources of information, it was known that such date of launching could be November 11. It could align ideally with the online shopping promotion of Singles Day, but unfortunately, it did not occur.

The bigger amount of banks would like to own digital currencies

Sweden is also interested to help the central bank to expand its technological horizons. A one-year contract to Accenture should help with building a pilot program that would support an innovative electronic currency named E-krona. The date of launching in Sweden will also be postponed, as the tentative project could be prolonged for seven years.

Japan also decided to participate in worldwide interest in sovereign cryptocurrency. Haruhiko Kuroda, the chief of the Bank of Japan, Haruhiko Kuroda, claimed that the bank schedules conducting “technical and legal research” in the field of crypto. Japan has no intention of issuing a numeric sovereign currency because of the cryptos are not high demand in the country. The date of launching is too early to be asked and to announce then, but work on the sovereign numeric currency is being continued.

To sum up about China

Caijing, Chinese business magazine, in December last year, informed that the country’s four main state banks – China Industrial and Commercial Bank, China Construction Bank, Bank of China, Agricultural Bank of China were involved in the growth process together with three telecom firms, which are owned by the state.