It has been largely speculated that the Chinese central bank which is working on its own cryptocurrency at the moment plans to let it out to masses in November this year.
Now, a Chinese newspaper, whose editor-in-chief is close to the Chinese Communist Party, rejects this information, calling it ‘inaccurate speculation’.
China is not in a rush to release its coin
The world is anticipating the new Chinese technological move, in the sphere of finance this time.
For a long while already, Chinese people are getting out of the habit of using cash which has been now largely replaced by electronic payments – mainly via WeChat Pay app. To buy things, even to give some money to a beggar in the street, all they have to do is take out their smartphone and scan a QR code.
Now, the Chinese central bank (the PBOC) has been working on its fiat-backed and government-controlled crypto for several years and has recently accelerated its efforts, having heard Facebook’s plans to launch Libra in 2020.
Various sources reported that the ‘China Coin’ would be released this fall, in November.
However, now the person who closely works with the paper that belongs to the Communist Party of China denies that, calling the anticipation ‘inaccurate speculation’.
Binance Research takes a look at ‘China Coin’
Binance Research stated that while the CBDC aims to improve monetary policy, it comes with concerns about potential risks and abuses of individual financial data.
The authors of the document have analyzed the Chinese CBDC (Central Bank Digital Currency). It would be pegged to fiat RMB on a 1:1 ratio and have ‘manageable anonymity and encryption features’.
The report says that the coin would be distributed to the population via banks. Also, recently U.Today reported that the Chinese central bank would use the help of seven major local companies, such as Tencent and Alibaba, to help pass the new currency to the population.
The report also says that the newly issued crypto would have:
The use of a "loosely-coupled" design, which would allow fund transfers without the need for a bank account.
The document also says that the CBDC would ensure:
The potential improvement of monetary policy, as CBDC allows the PBoC to map out a more comprehensive economic picture of all individuals and businesses across China.
The CEO of the BitMEX crypto exchange, though, believes that the China Coin will be just another method of controlling the population by following every their transaction and spending they make.