China’s Digital Currency Wants to Compete With Bitcoin – But It’s Not a Crypto

The Takeaway: A review of over 50 patent applications submitted by the People’s Bank of China shows the design of its central bank digital currency will only resemble a cryptocurrency in limited ways. A senior official at the central bank said the effort will be helpful to “restrain public’s demands for crypto assets and to strengthen the country’s sovereign currency.” Far from emulating the decentralized aspects of ether and bitcoin, the official emphasized the issuance of the central bank’s digital currency will stick to a centralized management model. China may be about to launch a fiat digital currency, but in all likelihood, it will only resemble a cryptocurrency on the surface. And it probably won’t use a blockchain. While inspired to some degree by bitcoin and the like, the effort is explicitly framed as a strategy to beat them back. The project was thrust into the spotlight last weekend when a senior official from the People’s Bank of China (PB…
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