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China reaffirms state cryptocurrency development commitments

06 November 2017 21:00, UTC

Given the technological level and capabilities China possesses, soon we might see the first state-issued cryptocurrency in the world. Officials believe that a digital currency controlled by the state could improve monetary policy, which highly contradicts with their views on non-state digital currency. As Yao Qian, according to South China Morning Post, said last Saturday, “the development of digital economy needs central bank-issued electronic currency more than ever”.

Yao Qian is not the first Chinese official to tell about the national cryptocurrency. Previously, Zhou Xiaochuan, who heads the central bank of China, stated that this bank is seriously considering the development of state digital currency, and after that, the same intentions were voiced by various officials in Russia and even Kazakhstan. And by the way, Yao Qian has already hinted at the possibility of this development a month ago. The regularity of such statements might indicate that the process is indeed underway.

Brett King, however, warned of one thing that might become an obstacle for the Chinese central bank. If the bank has decided to develop cryptocurrency solely on its own, the process might be much harder. Instead, they could have invited some fintech experts, as JP Morgan Chase already did with ZCash developers.