Since the ban announcement, China’s presence on crypto market is incessantly existing with one or other notes by investors/analyst. Government officially stated “Beijing’s announcement of creating its own state-run cryptocurrency.
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State-run cryptocurrency of China – The official call
Back in June, People’s Bank of China (PBOC) has launched the digital currency research institute. The primary focus of this institute was to promote the blockchain technology’s application. Yao Qian who is the director of this research institute has described.
“The value of cryptocurrencies such as bitcoin primarily comes from the market speculation. It will be a disaster to recognize it as a real currency. And the lack of a value anchoring inherently determines that bitcoin can never be a real one”.
However, the discussion at the meeting hosted by international telecommunication union has laid out how and why Beijing is introducing the state-run digital currency. According to media, Yao Qian said, the state-run currency is a key to alleviate the yuan. Furthermore, the espousal of this currency is versioned to overcome devaluation of the Yuan which the country is facing since 2015.
Though, cryptocurrency adoption under the preview of government can create a tangible value. This is because yuan is the key for bitcoin adoption in China and introducing state-run currency under Government’s preview can create stability in currency’s value.
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