About the fact that cryptocurrency is still illegal in China, the central bank says there is a lot of interest in its CBDC initiative.
After a representative of the People’s Bank of China reported that Bitcoin’s (BTC) recent surge had triggered revived interest in the nation’s digital yuan initiative, the cryptocurrency room could be helping to spawn its own competitors.
The digital yuan is China’s central bank digital currency, and its foundational values, like those of all CBDCs, are diametrically opposed to those of the cryptocurrency room.
In an attempt to more efficiently manage the flow of currency, government officials abandon core crypto principles such as decentralisation and democracy in favour of centralisation and regulation. The digital yuan is also expected to play an important role in China’s smart city plans, which will see whole cities go cashless in the coming years.
However, the PBoC claims that the “very strong” interest in the digital yuan is due to Bitcoin’s recent ascension to new all-time highs, considering the fact that cryptocurrency is still illegal in China.
PBoC research bureau director Wang Xin said interest in the digital yuan was driven in part by the ambitions of other countries to follow suit, and also by Bitcoin’s price hike. According to CNBC’s mandarin translation of his comments, Xin said:
“On one hand, this is related to more and more central banks in the world participating in the development of domestic digital currencies. On the other hand, this (interest) may also be related to the large increase in the price of bitcoin.”
In recent years, China has performed various pilot projects of the wireless yuan, including biometric hardware wallets, on-street ATMs, national lottery draws, and more.
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