China creating sovereign crypto currency.

Please note this sub-forum does not provide professional finance advice. You should seek advice from a licensed financial advisor.

To post in this sub-forum you must have made 100 posts or have Trust status or have completed our ID Verification.

If investing please consider our affiliate link for new accounts: Sharesies.

Forums › Finance and wealth management › China creating sovereign crypto currency.

KrazyKid

1247 posts

Uber Geek
+1 received by user: 616

#270287 2-May-2020 13:06

I've seen a couple of articles pop up recently about this, but it seems to be hitting the main stream media now.
China seems to be about to roll out a large trial of a national currency based on the blockchain.
I assume they feel it will be a more efficient at moving money about - speeding up the velocity of circulation and thus improving the economy. The other reason I can see them doing this is to track and thus control spending and therefore control it citizens more.

If they get this right surely other countries will follow, and not only Asian countries.

I wonder how long before NZ adopts this. 5-10 years?

https://www.theguardian.com/world/2020/apr/28/china-starts-major-trial-of-state-run-digital-currency

jpoc

1043 posts

Uber Geek
+1 received by user: 289

#2475572 3-May-2020 02:13

Why did you choose to use the phrase "crypto currency" in your topic heading?

* It is not a crypto currency.

* Throughout their article, The Guardian correctly refers to this as a digital currency.

wellygary

8810 posts

Uber Geek
+1 received by user: 5287

#2475578 3-May-2020 07:24

Sounds like the CCP/govt have finally decided they have had enough of Alipay and Wepay having the digital payment scene to themselves and want to assert some more control over it ....

cshwone

1092 posts

Uber Geek
+1 received by user: 847

#2475581 3-May-2020 08:00

Don't really understand this. 99% of all my banking, purchases etc are all done electronically with the addition that if I need physical cash I can walk up to a hole in the wall and get it easily.

What's the difference?

KrazyKid

1247 posts

Uber Geek
+1 received by user: 616

#2475710 3-May-2020 10:19

jpoc:

Why did you choose to use the phrase "crypto currency" in your topic heading?

* It is not a crypto currency.

* Throughout their article, The Guardian correctly refers to this as a digital currency.

Fair call - assumed they were using the blockchain but with further reading it seem seems be a distributed transaction ledger.
In my head a blockchain based digital currency is a cryptocurrency.

If a moderator reads this feel free to correct the thread title.

Regardless I think it is very interesting how China is embracing the both this digital currency and the blockchain generally.

This new digital currency will make use of the mobile phone for wallets, and have the ability to do offline transactions.
At this stage it will be a transaction currency only - you will not earn interest on monies held in the digital currency.

wellygary

8810 posts

Uber Geek
+1 received by user: 5287

#2475713 3-May-2020 10:24

cshwone:

Don't really understand this. 99% of all my banking, purchases etc are all done electronically with the addition that if I need physical cash I can walk up to a hole in the wall and get it easily.

What's the difference?

Everything you have just described is done through the banking system.....

In many parts of China and for many people there banking as we know it does not exist... thus the on line behemoths Ali and We have been able to leverage their reach and easy connectivity to basically become the defacto payment networks for very large parts of the Chinese economy...