China launches a Central Bank Cryptocurrency DCEP and takes the lead in the crypto space. The executive vice president of the China International Economic Exchange Centre has confirmed in today’s speech about the People’s Bank of China plans.
October 29, 2019, | AtoZ Markets – China will become the first nation in the world to issue its Central Bank Digital Asset. Earlier this week, the country already announced that it the 13th National People’s Congress has voted to adopt a cryptography law. The new Chinese cryptography law will come into force on the 1st of January 2020.
Also, its president took a favourable stance on blockchain technology. On the 25th of October, Xi Jinping said in public that China should adopt the emerging Blockchain Technology. Where other countries, such as the US, have taken a more cautious stance on Central Bank Digital Currencies. China has been working behind to scenes to make it really happen.
China Launches Central Bank Cryptocurrency DCEP
Huang Qifan, the executive vice president of the China International Economic Exchange Centre, announced this breaking news today at the Bund Summit. The politician said that China has been studying the possibility for its own Central Bank asset for six years. Huang Qifan announced that it’s likely that the People’s Bank of China (PBoC) will be the first central bank in the world to launch a digital currency. Furthermore, Huang Qifan confirmed that China’s own digital currency will be called DCEP, which stands for digital currency electronic payment.
How will DCEP impact the current Chinese stance on cryptos?
It is an interesting move by the Chinese officials. Considering that China has always been having a hostile stance against Bitcoin. BTC is still facing a ban. Despite Chinese Bitcoin miners are considered to be the main cause for ±70 percent of BTC’s hash rate. Nevertheless, the launch of a Chinese Central Bank Digital Asset could change the overall acceptance of cryptos in China. However, some would argue that it could threaten the existing online payment systems in China, such as Alipay and WeChat Pay. These online payment giants in China has recently banned any crypto transactions on its platform.
How do you think China’s Central Bank Digital Asset will affect the crypto market? Let us know in the comments section below.