There has been some talk in the Bitcoin space about the digital payment technology getting ready to be picked up by centralized powers. Facebook’s Libra coin has been all over media as they are trying to launch their own dollar-pegged cryptocurrency while still trying to avoid the confusing regulatory system in the United States that surrounds Bitcoin and other cryptocurrencies. However, it seems as now one of the largest economies in the world is working to launch their own state-backed digital currency network. The Deputy Chief in Payment and Settlement division of the People’s Bank of China Mu Changchun stated in an announcement that the new prototype is complete running on a blockchain infrastructure back-end with a few modifications.
At the China Finance 40 group meeting that took place yesterday, many executives from big banks and state officials stated that the PBOC state-backed digital currency is now ready to be launched. Changchun also reported that the system has been in development for over 5 years which just so happens to be around when the Bitcoin price increased to the four-digit mark. There are different views on centralized cryptocurrencies on whether they are good or dangerous. Many countries around the world are rushing towards a cash-free direction and digital payments are put in the center of the conversation. The governments are willing to fight money laundering and other financial crimes with cryptocurrency.
For example, the European Union just passed legislation last year making it illegal to make transactions worth over 10,000 EUR in cash. If a central bank digital currency is passed by the national governments, then we could start living in a world where every transaction will need state approval to happen as per the reports in some of the best cryptocurrency news sites.
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