According to an announcement from an official for the People’s Bank of China (PBOC), the country is nearly ready to unveil its new central bank digital currency (CBDC).
There’s been much talk recently in the Bitcoin space about digital payment technology getting picked up by centralized powers. Facebook Libra’s coin has been all over the news as they attempt to launch their own dollar-pegged crypto-currency while navigating the United State’s often confusing regulatory framework surround Bitcoin and other crypto-currencies.
Now, it looks like one of the biggest economies in the work is working to launch their own crypto-currency network. Mu Changchun, Deputy Chief in the Payment and Settlement Division of the PBOC, said in an announcement that the CBDC prototype is complete running on a blockchain infrastructure back-end with some slight modifications.
On the other hand, it could lead to less corruption higher up in the government. A system where all transactions are public could allow the public to audit government finances itself, thanks to the transparent nature of a blockchain. If a state official tries to embezzle or misappropriates money, the rest of the country would be able to prove it easily.
What do you think about state-backed coins? Is this the direction crypto-currencies will go or is it a last-ditch effort by governments to retain control? Let us know in the comments down below!
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