China Accelerates Its Cryptocurrency Program

In an apparent response to recent development in cryptocurrency space the central bank of China, The People’s Bank of China (PBoC), ha announced that it is accelerating the development of its cryptocurrency.

The announcement of Facebook’s Libra Stablecoin project has raised concerns from Chinese authorities, particularly, PBoC’s director, that it could lead to a scenario wherein sovereign currencies would coexist with U.S. dollar-centric digital currencies.

This would then bring a series of economic, financial and even international political consequences if left unchecked and countermeasures are not deployed.

The development of digital renminbi is the central bank’s response to the growing adoption of cryptocurrencies globally and as part of its strategy to strengthen financial risk remediation, policy propaganda interpretation, and social concerns.

Governments from around the world who were previously or still air against cryptocurrencies are now scrambling to develop or provide regulatory clarity in the industry as many powerful and highly influential companies are planning to enter the space, like Facebook and more recently Walmart.