Citing one of the top officials in the People’s Bank of China, Bloomberg reports that the PBOC is about to release its own state-supported crypto after five years of research and all other preparations.
China works hard to launch its own crypto
For the past year, the research department at the PBOC has been working away at creating its own cryptocurrency, approved by the governing communist party. The news was broken by the head of the bank’s payments dep, Mu Changchun recently. He did not provide any additional details, though.
The official stated that the central bank’s coin would be used instead of M0, which is cash in daily circulation and will not affect the present monetary policy of the government.
Bloomberg reminds that China has been working on its own digital coin for about five years. However, it was the announced launch of Libra that made the PBOC double its efforts on making the project come true as soon as possible.
Like many other countries, the Chinese government became worried that Libra, being tied to a basket of local currencies, may start affecting the country’s economy and financial system.
Will Ripple profit from the launch of the ‘China coin’?
In the comment thread under the Bloomberg post, the crypto community expressed very different opinions on the news.
The majority of comments suggested that the news was taken positively, except for those where people expressed their fears of China banning BTC miners and imposing a complete ban on Bitcoin once the PBOC launches its own crypto.
Some crypto community members believe that the upcoming Chinese state-backed currency will be yet another way to control the population and keep it poor.
The most curious was the reaction of the Ripple community, though. Some of its members reckon that the intention of the Chinese central bank to issue its own digital currency will ensure further XRP use as an asset for bridging the Chinese crypto and coins used in the rest of the world.