Will China revolutionize the world with Blockchain in 2018?
Jan 02, 2018 Posted / 2898 Views
China which enforced the shot down of Bitcoin and other cryptocurrency exchanges last year is being predicted by many analysts will become a leading innovator in Blockchain in 2018. The forecasters say that soon China will surprise the world and revolutionize the crypto space.
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Many specialists believe that in 2018 China will become the major contributor in the Blockchain space by becoming the first country to launch a central bank digital currency (CBDC), and also will provide for a large-scale blockchain implementation in the retail and logistics industry. Though the government has banned the cryptocurrency use, many firms in China are experimenting with blockchain solutions.
In this article, we will elucidate about some of the major predictions that can happen in the current year.
In September last year, digital currency exchanges were banned from China in September. However, the country took an affirmative stance towards central bank digital currency and blockchain, enthusiastically indulging in pertinent research.
In one example, during February 2016, People’s Bank of China (PBOC) president Mr Zhou Xiaochun confessed in an interview that the government of China has is examining the implementation of CBDC from much time. Additionally, on December 27, 2016, blockchain was added in the “13th Five-Year Plan for National Informatization.” The Chinese government confirmed the price of the blockchain, and since then it has risen steadily. Technically speaking, China is all equipped to commence the initial CBDC, as the PBOC has established a dedicated digital currency research group since 2014, which evaluates both digital currency issuance and the business operation framework. Both these spaces will need to sustain the launch of such technology in the country.
According to the reports in Chinese media in January 2017, China’s central bank effectively experienced the digital notes exchange platform. As per a paper published in Tsinghua Financial Review, a digital currency was utilized to exchange notes between commercial banks, including Industrial and Commercial Bank of China, Bank of China, WeBank, Shanghai Pudong Development Bank and Bank of Hangzhou. In July same year, the Central Bank Digital Currency Research Institution formally started working as a diverse business unit within PBOC.
Strategically speaking, the beginning of the Chinese CBDC supports the One Belt and One Road Initiative, an incorporated advancement of China’s international cooperation with the Eurasian Economic Union, China-Japan-South Korea Free Trade Area and other areas. This will facilitate China to utilize its geopolitical returns and build a significant stage for international cooperation.
Dealings with digital currency are more ingenious and expedient, eradicating the third-party settlement and the automated payments, reducing costs and error rates. It multiplies the likelihood of pay with RMB in transactions amongst other countries, which in other respect augments liquidity and globalizes the RMB.
From the standpoint of risk management, the Chinese CBDC can first be introduced as a pilot experiment to comprehend the public prospects and jeopardy. Moreover, a Chinese CBDC might at first be restricted to banks for intra-bank transactions, so that existing foreign exchange and capital controls can be forced not including fundamental modifications.
It may also help to circumvent botheration about the RMB paper notes or metal coins could be closed down which leads to financial insecurity, as we have seen in the Indian scenario. The Chinese populace and the commercial world just needs little more time to comprehend the technology and develop the associated applications, and soon it will transform the world.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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