Central Bank Of China To Launch Cryptocurrency
October 30, 2019 10:15 pm
One of the Chinese officials said that the country’s central bank is planning to launch a cryptocurrency. According to a report, Huang Qifan, vice chairman of China Center for International Economic Exchanges (CCIEE), stated that China’s central bank will win the race for the first central bank digital currency (CBDC).
Qifan shared his views at the Inaugural Bund Financial Summit of 2019 in Shanghai. The official was dissatisfied with current dependence on the United States’ SWIFT and CHIPS payments systems, on which cross-border exchange of the renminbi currently depends. He complained about the basis of both U.S. sanctioning using the platforms and their technical limitations.
“SWIFT is an outdated, inefficient and costly payment system. Since the establishment of SWIFT 46 years ago, the technology has been updated slowly and the efficiency has been relatively low.”
Last year, The central bank of China warned its citizens against cryptocurrency investments. The People’s Bank of China (PBoC) has announced the risks associated with digital currency investments. Xu Zhong, Director of the research bureau of China’s central bank, released the paper along with Zuo Chuanwei, a PBoC analyst.
The PBoC report mentioned:
“Take airdrops, where tokens are given out for free to participants, rather than raising funds directly in public via ICO, while reserving a portion of the total supply. These cryptocurrency startups then try to push tokens’ prices higher in the secondary market in a bid to reap profits.”