The Currency Analytics
By Dan Saada
While there is a widespread rumor about china is coming up with a cryptocurrency, several analysts think that it is not likely to be a cryptocurrency.
Zhou Xiaochuan, PBOC In response to Libra stated, “Make good preparations and make the Chinese Yuan a stronger currency.”
The largest banks in China are state-owned. In practice, PBOC might be controlled by the state and heavily influenced by it.
The Chinese Central Bank will need to have the majority of its decisions approved by the significant bodies in the Chinese Communist Party.
Since the PBOC will design all wallets, it will have access to all kinds of data relating to the transactions.
PBOC has filed for several patents, and these patents indicate that the PBOC might want to have end-to-end control of the process.
Mu Changchun, Deputy Director of PBOC payments department, stated, “Blockchain platform just couldn't deliver the throughput needed for retail.”
Considering the public display of data, it is very likely that the PBOC might use a similar governance structure which it might apply in coordination with the commercial banks to…
Because the PBOC is accountable to the state in the ultimate process, every kind of data related to cryptocurrency transactions might likely be stored for state purposes.
It seems like the Chinese government is looking to make the Chinese Yuan more versatile than launching a unique and new cryptocurrency.