One of the officials of the Chinese Central Bank (PBoC) has made public some new and extremely important details about the new digital currency. As you probably remember, it is about to be issued by the Middle Kingdom. It is no secret that the content of Mu Khangchan’s statement has disappointed Chinese citizens and caused them concern.
The disappointing details of the digital yuan
The South China Morning Post has published a statement by the Director of the Institute for Digital Currency Research. From the content it follows that the digital form of the yuan will not require the support of a basket of currencies. And as if that wasn’t enough, it will not be a form of speculative asset. As Changchan pointed out to him, this is to distinguish it from Bitcoins (BTC) or other digital currencies and tokens. No wonder that this fact was liked by many people and caused their disappointment and bitterness.
The Chinese crypto community is not satisfied with the fact, that it is not going to be able to speculate on the rate of the new crypto soon issued by the Chinese Central Bank (PBoC). Many internet users give vent to their frustration by posting comments online. One of them even noticed that due to the information provided above it will be simply a virtual form of yuan, not a digital asset.
It is worth noting that the timeframe for launching this project is still not precisely defined. Let us also not forget that none of the Chinese banks have confirmed that they participate in this project. As you probably remember, the news magazine Caijing recently published an article in which it mentioned that both four major financial institutions and three state-owned telecommunication companies are involved in the whole procedure.
Is the digital yuan really a real threat to the traditional Chinese currency?
The current authorities of the Middle Kingdom have already reassured the public many times, explaining that they do not intend to eliminate traditional cash. Despite the actions taken by the government, many Chinese citizens are very concerned that the above mentioned scenario may actually happen in the near future.
There are real fears that the Chinese government will start to control its society even more. Is this really possible? Of course, it is enough, for example, to remove the anonymity that citizens are entitled to in connection with their transactions.
Are the concerns of Chinese citizens unfounded? Is it a good step to put digital assets in the hands of those in power? Will this lead to innovation? Or will it rather bring us back to the times of slavery? Answers to these questions will bring the future. So there is nothing left to do but keep a close eye on it.