China wants to launch a new cryptocurrency

A senior official of the Central Bank of China said that the new digital currency proposed by China will have some similarities with Facebook’s Balance and will be used on China’s main payment platforms, such as WeChat and Alibaba.

Mu Changchun, Deputy Director of the Bank of China’s Payments Department, said, « The development of the  virtual currency will help to protect the country’s sovereignty against foreign currencies as the commercial applications of these currencies develop.

Mu, according to a lecture he gave this week and posted online. Said, « It is about protecting our monetary policy and legal monetary status. We need to plan for the future of Needs Day

A cryptocurrency will be as secure as central banknotes and can be used even offline. It can also be used in Tencent’s WeChat and Alibaba, supported by Alibaba , cryptocurrency the future  of china .

The Central Bank of China formed a research team in 2014 to explore the launch of its own digital currency in order to reduce the cost of trading in traditional currency and strengthen policymakers’ control over the money supply. Since then, nothing has been announced, but Mu announced last month that the digital currency was almost ready. The American financial magazine Forbes quoted sources saying the virtual currency 2k19 could be ready on November 11 .

Some analysts say that China seemed to be pushing for digital money after the American social media giant Facebook announced plans last June to launch its digital currency, Libra.

« China’s digital currency will strike a balance between allowing anonymous payments and preventing money laundering, » Mu said. Without going into detail, he said, it would have some similarities with Libra in design, but it would not be a direct version.

The cryptocurrency offered by Facebook has raised concerns among global regulators that it could quickly become a dominant form of digital payment and a money-laundering channel due to the massive expansion of cross-border social networks.

The Balance will be a digital currency backed by reserves of real assets, including bank deposits and short-term government securities, held by a network of trustees. Its structure aims to strengthen confidence and stabilize prices.

Like other cryptocurrencies, Balance transactions will be processed and recorded by blockchain technology, a huge chain of shared transactions held by a computer network , the new cryptocurrencies maybe it will be the next big cryptocurrency in 2020 .

Mo said. Its ability to use offline would allow transactions to continue in situations where communications, such as an earthquake, have been disrupted. « The advantage of the central bank’s digital currency over those issued by WeChat and Ali Pay is that trading platforms can, in theory, go bankrupt, which can cause losses to users, »

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