The cryptocurrency area may promote competition after a spokesman for the People’s Bank of China said the recent Bitcoin (BTC) boom has led to renewed interest in the country’s digital yuan project.
The digital yuan is the digital currency of China’s central bank, and like all digital central bank currencies, its fundamental principles are completely at odds with the principles of the cryptocurrency area.
The basic code concepts of decentralization and independence are abandoned in favor of centralization and supervision in an attempt by the authorities to easily control the flow of money. It is expected that the digital yuan will be at the heart of China’s ambition to create smart cities that will leave entire cities cash-bound for years to come.
But PBoC believes that “very strong” interest in the digital yuan is a result of Bitcoin’s recent rise to a full-time high despite the ongoing cryptocurrency ban in China.
Wang Xin, director of the PBoC Research Bureau, said that interest in the digital yuan is partly driven by other countries’ eagerness to follow suit, as well as the rise in bitcoin prices. According to a translation of his comments from CNBC, Shin said:
On the one hand, this is due to the presence of a growing number of central banks in the world that are involved in the development of local digital currencies. On the other hand, this (interest) may also be associated with a significant increase in the bitcoin price. ”
China has conducted several beta tests of the digital yuan over the past two years, expanding its experiment to include biometric wallets, street vending machines, withdrawals from national lotteries and more.