Blockchain Research Institute’s Donald Tapscott: Renminbi (RMB) Will Become A Cryptocurrency

Blockchain Author Claims Renminbi Will Become Crypto

China’s negative position on cryptocurrency is well-known. Just recently, the country banned bitcoin mining under the premise that doing so was necessary to save the environment. Its position on blockchain technology is similar. The country’s Cyberspace Administration introduced new regulations for blockchain companies’ mobile apps and website that require them to permit authorities access to stored data. In addition, registry procedures would be necessary for users.

Interestingly enough, despite the hardline stance that the country has taken, there are those who believe that at some point, there may be a shift. Donald Tapscott, the Executive Chairman of the Blockchain Research Institute believes that the renminbi will eventually make its way to the blockchain. He shared with Bloomberg,

“In 20 years, we’re not going to be using bitcoin in China. The Chinese people will use the RMB, only the RMB will become a cryptocurrency. The Central Bank of China will turn it into a digital currency.”

The basis for his position is that during a trip to China, he seemingly learned that President Xi Jinping personally views blockchain technology as “one of the two most important technologies for the future of China.” As for China’s ban on bitcoin, Tapscott refers to it as a “mistake.” He also discusses that there is a “dichotomy” in the country, in which there is a positive position on blockchain, but a negative one concerning cryptocurrency. He stated, “The government is quite serious about hurting crypto.”

The reason that blockchain technology may be viewed more favorably than crypto is that it is easier to accept. Cryptocurrency is often perceived as a disruptive technology. According to Christine Lagarde of the IMF, the “role of disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies or whatever . . . that is clearly shaking the system. We don’t want innovation that would take the system so much that we would lose the stability that is needed.”

Tapscott also seems to take the position that China is not the only country that will have it sown cryptocurrency. In his book Blockchain Revolution, he argues that the Bank of Canada would like other banks everywhere to “seriously study the implications of moving entire national currency systems to digital money.”

Of course, there are those who disagree with such a system. According to Don Weinland of the Financial Times, “no central banks are seriously considering issuing a CBDC at this time.”