Experts say that China’s official currency, the yuan, will become a cryptocurrency

Experts say that China’s official currency, the yuan, will become a cryptocurrency

Translator: Play the coin family ElaineHu

Donald Tapscott, executive chairman of the Blockchain Institute, said in an interview with Bloomberg on April 17 that China's official currency, the yuan, will become a cryptocurrency.

In the interview, Tapscott revealed that he is currently meeting with the vice chairman of the Chinese Communist Party. The Vice-Chair recalled that President Xi Jinping believed that the blockchain is one of the most important technologies for China in the future.

When talking about the government's ban on cryptocurrency exchanges, Tapscott outlined that China is also considering banning the exploitation of cryptocurrencies and added:

“It’s really not necessary to do this (forbidden exchanges and mining), because 20 years later, we will not use Bitcoin in China. The Chinese will use the RMB, only the RMB will become the cryptocurrency. The Chinese central bank will take it. Become a digital currency ."

When asked if the decentralized exchange could operate in China—China had previously banned some ICO projects—Tapscott said the answer was yes, even though the Chinese government still has a serious stance on cutting digital currencies.

Tapscott believes that decentralized exchanges will ultimately dominate centralized exchanges, thanks to their ability to claim transparency and identify "bad behavior." Tapscott said that all assets, including traditional assets such as securities, are said to be traded on decentralized exchanges.

The Chinese authorities have long been discussing possible bans on cryptocurrency mining. According to reports, the National Development and Reform Commission (NDRC) has included cryptocurrency mining as part of its revised list of industrial activities, which the agency intends to close, for reasons such as “lack of safe production conditions, severe waste of resources, and environmental pollution”. And other issues.

However, China remains a major player in the bitcoin market, and the country's largest bitcoin mining pool is mostly controlled by local institutions. According to reports, by the middle of 2018, the encryption mining operator Bitmain operates as many as 11 mines in China, so it will be largely affected by the NDRC reporting plan.

As for the blockchain, it is reported that the number of blockchain projects currently underway in China ranks first in the world. There are 263 blockchain related projects in China, accounting for 25% of the world.

Last month, Jiangsu Province issued a multi-year plan called “Implementation Plan for Promoting Transportation Infrastructure Construction”. According to the plan, the blockchain will be one of the technologies used by local governments to reorganize local transportation infrastructure.