Having already being the country with the highest number of population using cashless or digital options for payment, China is now looking at the next evolution by completely replacing paper money. The country had embarked on blockchain technology for its own denominated digital currency and early results shows the pilot program are making steady progress.
This comes as reported by a researcher at People’s Bank of China, Mr Mu Changchun who is the head of the central bank’s digital currency research institute was pleased with the tests thus far, he also dismissed concerns of user privacy infringement, saying the digital currency has the highest level of privacy protection among existing payment tools.
China’s aim in becoming a leader in this space is looking more a possibility with only a ‘matter of when’ rather than ‘if’ however, while the Kingdom can have all its citizen to adopt the technology without participation of foreign countries, the currency will only see adoption locally. What’s going well for digital currency is that globally, central banks are studying the blockchain technology and the viability of decentralising the exchanging of physical currency is bright.
The digital currency are issued by the country’s central bank and legally backed by the government as an alternative to paper money. China has stated that it will actively participate in the formulation of international rules and technical standards on data security, digital currencies and data tax. Countries like Canada and Japan have also been gearing up preparations for digital currencies.
Zhu Mi”The use of cash will be reduced by at least 40 percent in the coming decade,” predicted Zhu Min, chairman of the National Institute of Financial Research at Tsinghua University, as central bank-backed digital currencies will become more common globally.