China’s Official Currency Renminbi to Become Cryptocurrency

Apr 19, 2019 at 06:41 Update Date :Apr 19, 2019 at 07:13 UTC

There was a time when China was opposing cryptocurrencies like anything. The Chinese government had even banned the cryptocurrency exchanges, Initial Coin Offering (ICO) projects, and use of digital assets in the country. And now same China is planning to convert its official cryptocurrency Renminbi (RMB) into cryptocurrency.

In an interview with Bloomberg, Donald Tapscott, the executive chairman of the Blockchain Research Institute said that very soon the official Chinese currency RMB will become a cryptocurrency. In the interview, Donald revealed that recently he had a meeting with the vice chairman of Communist Party in China, who recalled that Xi Jinping, the president believes that the emerging blockchain technology can play an important for the future of the country. He further added

“It’s not really necessary to ban exchanges and mining because in 20 years we are not going to be using Bitcoin in China. Chinese people will use the RMB, only the RMB will become a cryptocurrency. The central bank of China will turn it into a digital currency.”

When he was asked, whether the decentralized exchanges will be allowed in China or not to, Tapscott, said that China is even planning to ban cryptocurrency mining in the country. The National Development and Reform Commission (NDRC) has included crypto mining in its revised list of industrial activities. The agency intends to shut down the activity because they lacked safe production conditions, polluted environment, and wasted resources. Though the country is a major player in the Bitcoin market as most of the largest Bitcoin mining pools are controlled by local Chinese organizations. Some Big players such as Bitmain will be seriously affected by the NDRC plans, as Bitmain has around 11 mining farms in the country.

The government has a serious stance towards curtailing cryptocurrencies. According to Donald, decentralized exchanges will dominate the centralized exchanges in the near future. In coming years, all assets including traditional assets such as securities will be available on the decentralized exchanges. China is a global leader in terms of number of blockchain projects. Currently, there are over 263 blockchain related projects running in China which accounts for 25% of the global total.

China is in a habit of banning outsider things to promote their own. In the past, China has banned Whats App so WeChat emerged as China’s social chatting platform. YouTube, Facebook, Twitter, Instagram, Yahoo search engine, Google maps, and many other sites are still banned in China. When the whole world is openly using these websites, China has a problem with them. The same thing is happening with the crypto industry. China is very happy to convert its own official currency into cryptocurrency but banning other cryptocurrencies, crypto exchanges, ICO projects, and Bitcoin mining in the country.

What do you think about China’s stance on cryptocurrencies; let us know in the comment section?

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