Central banks have been contemplating the idea of creating their own cryptocurrencies for a while now. China has been one of the first countries to express its intentions in this regard. The country’s CCIEE chair even stated that they will be the first to launch its central bank digital currency (CBDC). A former deputy governor of the People’s Bank of China (PBoC), however, said that they should slow it down.
China Should Slow Down With Its Cryptocurrency
Talks of China issuing its central bank digital currency escalated after Facebook announced its plans to develop Libra – a stablecoin pegged to numerous fiat currencies.
The vice-chairman of China’s Center for International Economic Exchanges (CCIEE), Huang Qifan, said that the country would be the first one to launch its cryptocurrency. At the time, it seemed as if China was speeding up the development process in response to Facebook’s Libra.
More recently, however, a former deputy governor of China’s highest banking institution – the People’s Bank of China, Zhu Min, expressed a slightly different stance on the matter. He said that the country should take part in the global regulation of Libra.
I think it’s critically important to join the discussions and take part in coordinated global regulation of Libra. – Zhu Min said.
He also said that there’s no official schedule for the release of China’s cryptocurrency. In addition, he noted that its development is a “natural process” within the Digital Currency Electronic Payment, as the research scheme is reportedly being referred to.
Zhu’s views were supported by China’s current chief economist for the Hong Kong Stock Exchange, Ba Shusong. He also said that a multilateral institution is needed to monitor cryptocurrencies such as Libra.
China’s Efforts And Controversy With Cryptocurrency
The country’s stance on cryptocurrencies remains controversial, to say the least. Almost immediately after Facebook’s Libra was announced, the Chinese President, Xin Jinping, urged for further adoption and development of blockchain-based technology.
It was later reported that the country plans to invest upwards of $2 billion on Blockchain 2023. And yet, cryptocurrencies remain a topic taboo for regulators in China. The “Blockchain not Bitcoin” narrative seems to be what drives legislation in the region.
However, the country is also obviously planning its own cryptocurrency, backed by its central bank. The question is if whether its intentions are as serious as presented, or if the country is trying not to fall behind on what seems like an increasingly popular trend.