China’s long-fabled “cryptocurrency” launch is finally on the horizon.
According to Bloomberg, People’s Bank of China (PBoC) payments department deputy director Mu Changchun confirmed at the China Finance 40 Forum that the country’s cryptocurrency is nearing its release following a year of research and development.
Given Beijing’s history of antagonism toward decentralized cryptocurrencies, what does the impending launch of a PBoC-approved digital currency mean for bitcoin?
China, which has had strict capital controls in place for many years to restrict the outflow of the depreciating Chinese yuan, is expected to use the PBoC-issued cryptocurrency to exercise even stronger control over the national currency.
By utilizing a centralized blockchain network or a system modeled after the blockchain, replacing cash in circulation with a digital asset would enable the PBoC and the government of China to better monitor -and control – the flow of the yuan.[Full article @ CCN.com]