Posted by Allison on 29 January 2016, 11:50
According to Bloomberg Business, we could soon be seeing China releasing its very own digital currency. The idea is that a currency like this would be supported by the state. This in turn would make various transactions far more efficient, and would also discourage money laundering among other things.
It all sounds very encouraging, but would it be this successful in real life? A digital currency must be carefully planned and released, not to mention monitored to ensure everything runs smoothly. It remains to be seen how the digital currency would work. Would everyone have access to it? Would you buy it with real money? Would you be able to change one currency into another? Could you use it to shop with online?
Seeing as this would be a state digital currency, it is uncertain whether this would be the case. It may simply be a case of making it easier to move monies around internationally and by the country.
But regardless of how the currency would work and why they would want to get one started in the first place, the fact that China is seriously considering this is something of a surprise. This is a country that was once very negative with regard to Bitcoin. Most people will have heard of that particular digital currency, even if they are unaware of exactly how it works. However, times have certainly changed. China now seems quite enthusiastic about bringing in their own digital currency for a variety of reasons.
But will it ever come to fruition? Many months of discussions and research have already gone into this proposed project. That could mean the odds of China launching such a currency are very encouraging. The main concern is the amount of capital China is losing out on, as it is flowing out of the country. China wants the capital to stay in the country, and according to reports, the best way to do this (or at least one way) is to launch a digital currency.
For now, this is news that looks set to come true at some stage. How and when that will happen remains unknown for the moment. But we will keep watching to find out more when it occurs.