The Chinese Central bank is expected to launch its cryptocurrency dubbed “China Coin” in the next few months. The coin is expected to be offered to seven fintech giants in the country.
Among the firms that will be allowed to use the “China Coin” are UniPay, Tencent, and Alibaba. The coin is expected to be introduced as early as November when the biggest shopping day takes place in China. The firms allowed to use the crypto will make it available to consumers across China and ultimately across the globe. Reports indicate that the “China Coin” will be available for international payments in other countries via banks.
In April, Arthur Hayes, the CEO of BitMEX, had foreseen this scenario happening soon. Hayes stated that the government would soon replace fiat currencies with digital coins issued by the central bank.
But during a recent podcast, he warned that this is in a bid to control the financial activities of Chinese citizens. He added that it would enable the government to monitor and remove those who are not abiding by the law from the financial system.
Hayes said the central bank cryptocurrency will have much control and once people realize that they will turn to Bitcoin. This move is expected to encourage people to embrace the world’s leading cryptocurrency.
Global companies and financial institutions are currently implementing cryptocurrency projects. They want to turn physical currencies into crypto to replace the dollar and other fiat currencies. Currently, Facebook’s Libra is one such project, but it is facing regulatory challenges from financial institutions and legislators.
China has been developing its coin in the last five years, but following Facebook’s Libra project, they have accelerated the process. Recently Mark Carney, the head of the Bank of England, stated that soon the world would see crypto issued by various central banks to attempt to replace the dollar as a reserve currency.