The Significance Of Suggesting The Chinese Renminbi Is Destined To Become Cryptocurrency

Chinese Renminbi Destined To Become Cryptocurrency

April 17^th announced the possibility of a new digital currency based out of China. During an interview on Bloomberg, Donald Scott the executive chairman of the Blockchain Research Institute reported on the likelihood of the Chinese Renminbi becoming a cryptocurrency. China’s Communist Party Vice-President backed the claims by speaking on President Xi Jinping’s belief in blockchain technology, mainly on its importance for improving Chinese economy.

Even though the ban on cryptocurrency exchanges in China is well known, country leaders still see crypto’s value along with any technology used to manage it.

Tapscott went into further detail about China’s plans with cryptocurrency in the following statement,

“It’s not really necessary to do ban exchanges and mining in China something also discussed because in 20 years we are not going to be using bitcoin in China. 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.”

Will Decentralized Exchanges Be Allowed To Operate In China?

Country officials have already banned ICOs – making it easy for them to ban decentralized exchanges as well, especially since they are more effective than centralized ones at handling illicit activities. Banning mining in the country is another potential move the government could make, it’s not a far-off bet since they’ve already begun talks on the subject. NDRC representative’s included cryptocurrency mining in the newly revised draft for the lack of safe production conditions related to operations. Other reasons potentially banning crypto mining were related to environmental hazards along with wasted resources.

The Future Of Cryptocurrency In China

Still, China is one of the largest influencers in the BTC market, particularly with mining operations that are currently run by local networks. If the NDRC does decide to ban mining, it will spell out trouble for some major players in the industry. Bitmain, for example, runs as many as eleven mining operations in the country.

Blockchain technology will also be affected greatly depending on what decisions the Chinese government makes regarding cryptocurrency. More than 260 blockchain related organizations are fully operational in China, worldwide that is 25% of all. This doesn’t necessarily mean blockchain will be affected negatively, local governments are planning on using the technology for different improvements in the country. Jiangsu Province will be the first to use blockchain to improve the transportation sector with the Implementation Plan for the Promotion of Transportation Infrastructure Development, proving blockchain will likely have a major role in country development for years to come.