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China central bank to release digital currency prototype in 2017

Back in August 2016, Fan Yifei, Vice President fo People’s Bank of China, has written an article elaborating the theoretical basis and framework selection of China’s fiat digital currency. He says that the legal framework of China’s legal digital currency tends to follow “central bank – commercial bank” dual model, that is: the central bank is responsible for digital currency issuance and verification monitoring. Commercial banks are responsible for providing digital currency circulation services and building application for the ecosystem. A Demo system is expected to be released after the Spring Festival of 2017 after two rounds of revision.

china-digital-currency
PBoC official has been actively engaged in the discussion of government-backed digitial currency since the first Central Bank’s Digital Currency Workshop held in Beijing on 20th January 2016. Sheng, Songcheng, Director of the Investigation and Statistics Department of PBoC, gave 6 reasons to justify the necessity for centralized digital currency.
PBoC is seeking six developers with a master’s degree or a doctorate in computer science, information security and cryptography to work on the design and development of digital currency-related software and hardware framework.
It is reported  that the PBoC digital currency is issued by the central bank, encrypted and backed by national credit. With the backup of national credit, the PBoC digital currency is essentially the same with the paper banknote in circulation, only the latter will be gradually replaced by the former.
Below is the description of the PBoC digital currency:

The encrypted numeric string that represents a specific amount is verified by a specific cryptographic and consensus algorithm. It can be stored in a digital wallet for use in a mobile terminal, a PC terminal or a card base. Users can deposit it as cash in the bank account to access service like transaction, payment and earning interest as well.

As disclosed by Hu Youwen in December 2016, analyst from Anxin Securities,  the issuance and withdrawal of PBoC’s digital currency will be in line with the existing “Central Bank-Commercial Bank” mode.
Regarding the operational framework, the central bank digital currency will stick to the current dual mode of “Central Bank-Commercial Bank”. Central bank will issue digital currency to the commercial bank business pool. Commercial banks will be commissioned by the central bank to provide digital fiat currency to public for deposit and withdrawal and other services. Together with the central bank, the commercial bank will maintain normal operation of issuance and circulation system.
In the dual mode, the transfer and storage of central bank digital currency will be conducted through the central bank issuance treasury, commercial bank treasury and user digital wallet. The overall operation framework has no significant difference with traditional currency, only the transfer and storage methods will be slightly different.
Other than the three links of central bank treasury, commercial bank treasury and user’s digital wallet, the system also incorporates 3 centers: Authentication, Registration and Bigdata Analysis.
As the basic component of the system security, the Authentication Center can centrally manage identity information of institutions and individuals. The Registration Center keeps a record of the central bank’s digital currency and the identity of corresponding user, completing the ownership registration and recording the issuance, circulation, audition and cancellation. Bigdata Analysis Center is to analyze and monitor a variety of trading activities.
Thus the framework could be summarized as

one currency, two treasuries and three centers

The digital currency may come as a relief since the banking industry in China is in desperate need to cut off their costs.

COMMENTS(47)

  • Xester
    5 months ago Xester

    This is one of the signs that I always spoke about. This is one of the signs that bitcoin will possibly be a goner in the years to come. There are two things that may actually happen to bitcoin when this fiat digital currency is launch.1. There will be huge volume of bitcoin being dumped in the market by Chinese holders and miners. And since they own the biggest shares when they dump bitcoin it will possibly drop to 500$ to 300$ each.2. If China will not make a dump then bitcoin will remain the same.

  • IIOII
    5 months ago IIOII

    So China’s central banks discover the altcoin market. Great news. Not surprising, what the central bank has to offer is simply digital fiat money under their central control. They are basically replicating PayPal as a national service. Innovation: Zero, just as the government loves it.

  • BillyBobZorton
    5 months ago BillyBobZorton

    Quote from: dihari on January 06, 2017, 09:50:56 AM
    The future is coming very soon. This make some questions for all bitcoiners in the world, especially in China. do we have to worry about that? If this a good news, what is the best impacts for bitcoin users?

    It’s good news, since teh fiat currencies released by governments will be closed source, heavily centralized, monitored and taxed, so people will search for bitcoin as the free borderless decentralized alternative that doesn’t depend on any government. It’s really good news actually since it accentuates the case for bitcoin, average joes will understand the difference.

  • albama
    5 months ago albama

    Quote from: hl5460 on January 06, 2017, 09:32:38 AM
    China central bank to release digital currency prototype in 2017Back in August 2016, Fan Yifei, Vice President fo People’s Bank of China, has written an article elaborating the theoretical basis and framework selection of China’s fiat digital currency. He says that the legal framework of China’s legal digital currency tends to follow “central bank – commercial bank” dual model, that is: the central bank is responsible for digital currency issuance and verification monitoring. Commercial banks are responsible for providing digital currency circulation services and building application for the ecosystem. A Demo system is expected to be released after the Spring Festival of 2017 after two rounds of revision.http://news.8btc.com/china-central-bank-to-release-digital-currency-prototype-in-2017

    That is lovely news. It helps bitcoin grow up higher. Like this news. Thank you for your share

  • iqlimasyadiqa
    5 months ago iqlimasyadiqa

    These are all people expect. we will begin to enter the era of digital currency. bitcoin will have a very high prestige. china started this with a very nice, momentum.

  • Digitalbitcoin
    5 months ago Digitalbitcoin

    Well its up to any of government. But such altcoins will become centralized not decentralized. And centralization can make it common. So even any of country launch own cryptocurrency it cannot beat bitcoin.Even it will support bitcoin to become more valuable.

  • kumax
    5 months ago kumax

    Why would anyone want to buy a centralized cryptocurrency which is controlled by a bank from China? If I want anything like this, I would rather buy fiat. If I want some kind of independence and anonymity, I’ll go for bitcoin.I don’t believe it will have a big success.

  • BillyBobZorton
    5 months ago BillyBobZorton

    Quote from: kumax on January 06, 2017, 01:15:33 PM
    Why would anyone want to buy a centralized cryptocurrency which is controlled by a bank from China? If I want anything like this, I would rather buy fiat. If I want some kind of independence and anonymity, I’ll go for bitcoin.I don’t believe it will have a big success.

    Why did the chinese panic sell in recent hours at the news of the government wanting to do something about bitcoin? (they didn’t even mention the word ban as far as I know..) the government has a very powerful network effect. They can trigger panic sell on the weak holders, they will make them run for the comfort of a regulated and stable price currency. But of course, you’ll never get rich holding a boring ass centralized, regulated closed source crypto so they will eventually come back to the excitement of bitcoin.

  • Bitcoinpro
    5 months ago Bitcoinpro

    complete and utter crud same story regurgitated 50 times

  • franky1
    5 months ago franky1

    Quote from: kumax on January 06, 2017, 01:15:33 PM
    Why would anyone want to buy a centralized cryptocurrency which is controlled by a bank from China? If I want anything like this, I would rather buy fiat. If I want some kind of independence and anonymity, I’ll go for bitcoin.I don’t believe it will have a big success.

    the point is that the china central banks altcoin WILL BE THEIR FIATto citizens they wont see the difference at first. the banks will just swap their old database to a new database in very laymans terms. citizens wont notice the difference to how their bank balance is stored. as thats behind closed doors. but later they will start offering NFC smartwatches or  smartphone apps instead of debit cards/paper cash.the benefit i can see is instead of card cloning and merchants storing card information. the hardware wallet(smartphone/watch/wristbands) just sends a signed tx to the merchant, making each transaction unique to that purchase. to avoid card cloning or merchant hacking. due to the fact a banking customer keeps the privkey safe in their own device.the downside i can see is lose the device, lose access to your income and starve. in a utopian situation that was permissionless.. so to solve that, ofcourse the banks will have access to your key to ‘re-credit’ you or give you a new device. making it still a permissioned/middleman payment system, meaning the system wont change much just the way a customer pays (NFC smartphone/watch instead of magnetic strip debit card or paper cash) will change

  • tyz
    5 months ago tyz

    I can not see how this should help Bitcoin. At least, it could help to grow attention for crypto coins. I opened a discussion about “Central Bank Coins Are the New Altcoins” in Altcoin section three weeks ago. It cointains an interesting article about this topic.Quote from: albama on January 06, 2017, 12:42:01 PM

    Quote from: hl5460 on January 06, 2017, 09:32:38 AM
    China central bank to release digital currency prototype in 2017Back in August 2016, Fan Yifei, Vice President fo People’s Bank of China, has written an article elaborating the theoretical basis and framework selection of China’s fiat digital currency. He says that the legal framework of China’s legal digital currency tends to follow “central bank – commercial bank” dual model, that is: the central bank is responsible for digital currency issuance and verification monitoring. Commercial banks are responsible for providing digital currency circulation services and building application for the ecosystem. A Demo system is expected to be released after the Spring Festival of 2017 after two rounds of revision.http://news.8btc.com/china-central-bank-to-release-digital-currency-prototype-in-2017

    That is lovely news. It helps bitcoin grow up higher. Like this news. Thank you for your share

  • franky1
    5 months ago franky1

    Quote from: albama on January 06, 2017, 12:42:01 PM
    That is lovely news. It helps bitcoin grow up higher. Like this news. Thank you for your share

    funny part is that when people talk about media coverage of bankers using blockchains. first they try to say fiat is bad. but then go and shout happily about how it will make them profits when bitcoins FIAT PRICE rises so they can exit bitcoin and return to fiat.(facepalm)banks hyperledger sidechain announcements do not effect bitcoin. (the technology) as they are separate things. so if all you care about is fiat prices, your not only missing the purpose of bitcoin. but also the hyper inflation of fiat due to the bankers sidechain swap. meaning your not going to gain anything when $10,000 only buys you a loaf of bread.the fiat price and bankers fiat games are meaningless, when you start to appreciate what bitcoin is really about

  • Kprawn
    5 months ago Kprawn

    Quote from: Xester on January 06, 2017, 12:14:44 PM
    This is one of the signs that I always spoke about. This is one of the signs that bitcoin will possibly be a goner in the years to come. There are two things that may actually happen to bitcoin when this fiat digital currency is launch.1. There will be huge volume of bitcoin being dumped in the market by Chinese holders and miners. And since they own the biggest shares when they dump bitcoin it will possibly drop to 500$ to 300$ each.2. If China will not make a dump then bitcoin will remain the same.

    Why would people want to make the same investment decisions to invest in a Chinese digital currency, like they did with Bitcoin. Every cleverinvestor will know the difference between private centralized ledgers and Bitcoin < public blockchain > A private ledger will never attract somuch investors, because of the higher risk involved with private blockchains. These blockchains have no public consensus, so they can manipulate the supply, like they are doing with fiat currencies. So this will just be a digital version of fiat currencies.  

  • franky1
    5 months ago franky1

    Quote from: Kprawn on January 06, 2017, 03:53:57 PM
    So they can manipulate the supply, like they are doing with fiat currencies. So this will just be a digital version of fiat currencies.  

    agreed with all you said, but to highlight one part.but there is money to be made in manipulating the supply.pump and dumpers make profits, while outsiders not involved can only react to the drama/crises such pump and dumps cause. but not benefit from it because they are on the outside.bankers will profit from their hyperledger sidechains. its why they are doing it, they are the casino. and like gambling.. the house always wins

  • cellard
    5 months ago cellard

    Quote from: franky1 on January 06, 2017, 03:57:55 PM

    Quote from: Kprawn on January 06, 2017, 03:53:57 PM
    So they can manipulate the supply, like they are doing with fiat currencies. So this will just be a digital version of fiat currencies.  

    agreed with all you said, but to highlight one part.but there is money to be made in manipulating the supply.pump and dumpers make profits, while outsiders not involved can only react to the drama/crises such pump and dumps cause. but not benefit from it because they are on the outside.bankers will profit from their hyperledger sidechains. its why they are doing it, they are the casino. and like gambling.. the house always wins

    Indeed, they will profit from being the guys in charge secretly fucking around with the total supply. Can you imagine the disaster that it would be for bitcoin if devs could secretly raise the supply from 21 million to anything higher? That is how future fiat cryptos will work.I have hope that people will realize the scam that that is, and they will then find bitcoin, and bitcoin isn’t perfect but nothing in life is, and bitcoin is certainly a million times better than a closed souce govcoin nightmare.

  • BitcoinAllBot
    5 months ago BitcoinAllBot

    Here is the link to the original comment thread. Or you can comment here to start a discussion. Author: 8btccom

  • kumax
    5 months ago kumax

    Quote from: BillyBobZorton on January 06, 2017, 01:24:32 PM

    Quote from: kumax on January 06, 2017, 01:15:33 PM
    Why would anyone want to buy a centralized cryptocurrency which is controlled by a bank from China? If I want anything like this, I would rather buy fiat. If I want some kind of independence and anonymity, I’ll go for bitcoin.I don’t believe it will have a big success.
    Why did the chinese panic sell in recent hours at the news of the government wanting to do something about bitcoin? (they didn’t even mention the word ban as far as I know..) the government has a very powerful network effect. They can trigger panic sell on the weak holders, they will make them run for the comfort of a regulated and stable price currency. But of course, you’ll never get rich holding a boring ass centralized, regulated closed source crypto so they will eventually come back to the excitement of bitcoin.

    But it doesn’t answer my question.  If the bitcoin holders are in panic, why would they buy another cryptocurrency instead of “safe” fiat? What would be the difference?Quote from: franky1 on January 06, 2017, 01:59:22 PM
    the point is that the china central banks altcoin WILL BE THEIR FIATto citizens they wont see the difference at first. the banks will just swap their old database to a new database in very laymans terms. citizens wont notice the difference to how their bank balance is stored. as thats behind closed doors. but later they will start offering NFC smartwatches or  smartphone apps instead of debit cards/paper cash.the benefit i can see is instead of card cloning and merchants storing card information. the hardware wallet(smartphone/watch/wristbands) just sends a signed tx to the merchant, making each transaction unique to that purchase. to avoid card cloning or merchant hacking. due to the fact a banking customer keeps the privkey safe in their own device.the downside i can see is lose the device, lose access to your income and starve. in a utopian situation that was permissionless.. so to solve that, ofcourse the banks will have access to your key to ‘re-credit’ you or give you a new device. making it still a permissioned/middleman payment system, meaning the system wont change much just the way a customer pays (NFC smartphone/watch instead of magnetic strip debit card or paper cash) will change

    That answers it more clearly and I have to admit that it makes sense. I saw on it only from the economic point of view, but you’re right, that it could be successful because of its better technology.

  • hl5460
    5 months ago hl5460

    China central bank to release digital currency prototype in 2017Back in August 2016, Fan Yifei, Vice President fo People’s Bank of China, has written an article elaborating the theoretical basis and framework selection of China’s fiat digital currency. He says that the legal framework of China’s legal digital currency tends to follow “central bank – commercial bank” dual model, that is: the central bank is responsible for digital currency issuance and verification monitoring. Commercial banks are responsible for providing digital currency circulation services and building application for the ecosystem. A Demo system is expected to be released after the Spring Festival of 2017 after two rounds of revision.http://news.8btc.com/china-central-bank-to-release-digital-currency-prototype-in-2017

  • dihari
    5 months ago dihari

    The future is coming very soon. This make some questions for all bitcoiners in the world, especially in China. do we have to worry about that? If this a good news, what is the best impacts for bitcoin users?

  • Actualiteit
    5 months ago Actualiteit

    Fiat digital currency… I thought nearly all fiat currency was digital already, as in it doesn’t exist? Central banks should stop trying so hard to release their own shitcoins.

  • royalfestus
    5 months ago royalfestus

    I knew it, if it does not happen now it will happen soon. Everything about economy, financial policies and technology in Asia points to that direction,  and if it can be adopted by a 1 billion country people, the value will be erupting. China has the recent track record of succeeding. This could help the trade of produce through online store to neighboring Asia countries, South America and Africa. If the government promote it. lots of money will be invested which make a big competition with bitcoin. By rumored Asia bitcoin centralization and mass adoption, bitcoin will be able to compete and survive it.

  • Mometaskers
    5 months ago Mometaskers

    But then this would be just a digital fiat that they’d use to replace the yuan. I don’t see any advantage in this compared to bitcoin. Well, they can do whatever they want, so long as they don’t interfere with bitcoin’s development and use. If they compel their citizens to exchange their bitcoins for this digital fiat, we could possibly end up with useless bits.

  • ebliever
    5 months ago ebliever

    Why should I favor a centrally controlled government currency that can be manipulated and controlled, over a free-market and decentralized cryptocurrency like bitcoin or zcash? The only reason I can think why a person would choose the first option is because someone is coercing them to do so. Governments have a lot of firepower and a history of using it. So this kind of development is ominous.

  • xuan87
    5 months ago xuan87

    well it won’t affect crypto currency too much, it is just a fiat that being change into digital currency, and the coin is not going to anonymous and it will be centralized, so there is no different with fiat, I don’t think it will be successful, the government won’t succeed to rule bitcoin down, the user used bitcoin because the user want a currency that free from control

  • calkob
    5 months ago calkob

    So what, banks will do what ever they can to try and stay relevant, but their greed will always be their downfall, people want to control their own finances and they wont settle for a government controlled/inflated currency even if it works of a blockchain. 

  • romero121
    5 months ago romero121

    Quote from: calkob on January 07, 2017, 12:14:45 AM
    So what, banks will do what ever they can to try and stay relevant, but their greed will always be their downfall, people want to control their own finances and they wont settle for a government controlled/inflated currency even if it works of a blockchain.&nbsp;

    Though people would like to be with the decentralized currency its still not legalized in most countries and several countries were hardly opposing it. In such scenarios sure such centralized digital form of fiat to gets the attention of country men and if found successful then surely they prefer bitcoin for other transactions, because their own country currency gets circulated within the country.

  • shinratensei_
    5 months ago shinratensei_

    Expecting it will be like USDT…. But the advantages can be taking from them, the Chinese people are no need for transacting his amount through the fiat. Is this will give an advantage for bitcoin or will be restricting the competition in crypto. Interesting for watch. 

  • cellard
    5 months ago cellard

    Quote from: shinratensei_ on January 07, 2017, 02:16:17 AM
    Expecting it will be like USDT…. But the advantages can be taking from them, the Chinese people are no need for transacting his amount through the fiat. Is this will give an advantage for bitcoin or will be restricting the competition in crypto. Interesting for watch. 

    USDT seems interesting to trade bitcoin without having to deliver all of your personal data to the exchanges… has anyone tried it? In poloniex there is a 1000+ BTC market of USDT, seems enough to do some trading. Quote
    How does Tether work?Tethers exist on the Bitcoin blockchain through the Omni Protocol. The Omni Protocol is open source software that interfaces with the Bitcoin blockchain to allow for the issuance and redemption of cryptocurrency tokens, in our case, “tethers”.Tether Platform currencies are 100% backed by actual fiat currency assets in our reserve account. Tethers are redeemable and exchangeable pursuant to Tether Limited’s terms of service. The conversion rate is 1 tether USD₮ equals 1 USD.The Tether Platform is fully reserved when the sum of all tethers in circulation is greater than or equal to the balance of fiat currency held in our reserve. Through our Transparency page, anyone can view both of these numbers in near real-time.

    Seems like a good idea… you could trade anonymous in poloniex as long as you don’t need to get out more than $2500.

  • YuginKadoya
    5 months ago YuginKadoya

    Quote from: hl5460 on January 06, 2017, 09:32:38 AM
    China central bank to release digital currency prototype in 2017Back in August 2016, Fan Yifei, Vice President fo People’s Bank of China, has written an article elaborating the theoretical basis and framework selection of China’s fiat digital currency. He says that the legal framework of China’s legal digital currency tends to follow “central bank – commercial bank” dual model, that is: the central bank is responsible for digital currency issuance and verification monitoring. Commercial banks are responsible for providing digital currency circulation services and building application for the ecosystem. A Demo system is expected to be released after the Spring Festival of 2017 after two rounds of revision.http://news.8btc.com/china-central-bank-to-release-digital-currency-prototype-in-2017

    If it is like bitcoin a Cryptocurrency I think it would need to wait many of years so it could succeed just like bitcoin did, but if it is just a fluke or using fiat as digital currency it is just like a online storage like paypal, by sending dollars as transaction well let’s just hope it would not cause any trouble in the bitcoin community.

  • hatshepsut93
    5 months ago hatshepsut93

    Today you can hide your operations away from the government by buying btc with cash, but as governments move towards digital currencies, they’ll get much more control over all transactions, and it will be harder to obtain Bitcoins privately.

  • electronicash
    5 months ago electronicash

    Do you think Antshare will soon have its advantage when their central banks digital curriency comes to realization? Antshares are known for its support by the chinese to which call this the Chinese ETH.

  • Juggy777
    5 months ago Juggy777

    Well they can try and good luck to them. It shall fall flat on their face, cause it’s again going to be centralized and government can track it, and not to forget the taxes they need to pay on the Fiat digital currency. Plus it’s value won’t increase like btc, it will remain same just trying to be cashless invokes lots of risk. Next year we all will read of how they tried but did not succeed lol

  • iamTom123
    5 months ago iamTom123

    Quote from: Xester on January 06, 2017, 12:14:44 PM
    This is one of the signs that I always spoke about. This is one of the signs that bitcoin will possibly be a goner in the years to come. There are two things that may actually happen to bitcoin when this fiat digital currency is launch.1. There will be huge volume of bitcoin being dumped in the market by Chinese holders and miners. And since they own the biggest shares when they dump bitcoin it will possibly drop to 500$ to 300$ each.2. If China will not make a dump then bitcoin will remain the same.

    I agree with some of your views. The problem with Bitcoin is that it can be manipulated all the way from China since Chinese coin holders got a big percentage of the total Bitcoin volume. It can then be easy to see that China can be the downfall of Bitcoin…

  • Dudeperfect
    5 months ago Dudeperfect

    I am not surprised by this news because I believe that the, blockchain has the potential to handle much more things than just crypto payments. People are working on a blockchain based property ownership recording system. In next few years we might see the blockchain technology in many sectors which not necessarily be related to payments. It has very good potential.

  • mining1
    5 months ago mining1

    Centralization is bitcoin’s achille’s heel. One announcement of chinese government and bitcoin dropped 30%, and it’s still dropping. What if in 6 months they decide it isn’t enough and they ban bitcoin in china ? Most bitcoins are owned by the chinese since they mine it, if they dump the price can crash to 100$ easily. Or if the government decides to shut down the mining farms ? Any of these decision can kill bitcoin forever, since the difficulty cannot be adjusted in time, the remaining farms outside china cannot keep up with low hashpower because of the huge difficulty and bitcoin dies.These are hard times for the public crypto / blockchain scene, because when bitcoin dies, most altcoins will die aswell.

  • cellard
    5 months ago cellard

    Quote from: mining1 on January 07, 2017, 03:31:49 PM
    Centralization is bitcoin’s achille’s heel. One announcement of chinese government and bitcoin dropped 30%, and it’s still dropping. What if in 6 months they decide it isn’t enough and they ban bitcoin in china ? Most bitcoins are owned by the chinese since they mine it, if they dump the price can crash to 100$ easily. Or if the government decides to shut down the mining farms ? Any of these decision can kill bitcoin forever, since the difficulty cannot be adjusted in time, the remaining farms outside china cannot keep up with low hashpower because of the huge difficulty and bitcoin dies.These are hard times for the public crypto / blockchain scene, because when bitcoin dies, most altcoins will die aswell.

    China officially banning bitcoin and going against the miners could hurt bitcoin’s price, but it’s far from killing bitcoin “forever”. We have already seen the price go from 1160 dollars to almost 2 figure dollars, and we saw it go from there to 4 figures again. Bitcoin has already demonstrated that it can be reborn from “death”. Now it’s the “if it did it once it can do it again” mentality is in the global market psychology.

  • mining1
    5 months ago mining1

    No. Because back then bitcoin had low difficulty, and was more decentralized. But things changed, nowadays probably more than 90% of hash power is in china. So if 90% of the hashpower vanishes over night the network won’t be able to recover because the low hashrate outside the china won’t have enough power to keep the network running. And the adjust period is <1week. In the meantime, there’ll be a war to exit bitcoin to alts or fiat which would further slow down the already clogged network in a spiral to death.Yeah, eventualy things would settle down, but a 5-50$ bitcoin would never recover anymore since all the cult believing which is what is sustaining bitcoin today will be gone then. The impact on it’s image would be too severe.This is why POW cannot work long term.

  • franky1
    5 months ago franky1

    Quote from: mining1 on January 07, 2017, 04:17:03 PM
    No. Because back then bitcoin had low difficulty, and was more decentralized. But things changed, nowadays probably more than 90% of hash power is in china. So if 90% of the hashpower vanishes over night the network won’t be able to recover because the low hashrate outside the china won’t have enough power to keep the network running. And the adjust period is <1week. In the meantime, there’ll be a war to exit bitcoin to alts or fiat which would further slow down the already clogged network in a spiral to death.Yeah, eventualy things would settle down, but a 5-50$ bitcoin would never recover anymore since all the cult believing which is what is sustaining bitcoin today will be gone then. The impact on it’s image would be too severe.This is why POW cannot work long term.

    facepalmdont call out foolish numbers

  • densuj
    5 months ago densuj

    Well i think it is fiat money that become digital currency, because there are regulator, controler and something are like other fiat money.That is not digital currency I guess, is like bitcoin and other fair digital currencies. It can be manipulated by government and central bank.Although maybe it will be more stable than other altcoins, but i am doubt the people at China will use it for investing, i will see until it be launched on the markets.

  • davis196
    5 months ago davis196

    Quote from: hl5460 on January 06, 2017, 09:32:38 AM
    China central bank to release digital currency prototype in 2017Back in August 2016, Fan Yifei, Vice President fo People’s Bank of China, has written an article elaborating the theoretical basis and framework selection of China’s fiat digital currency. He says that the legal framework of China’s legal digital currency tends to follow “central bank – commercial bank” dual model, that is: the central bank is responsible for digital currency issuance and verification monitoring. Commercial banks are responsible for providing digital currency circulation services and building application for the ecosystem. A Demo system is expected to be released after the Spring Festival of 2017 after two rounds of revision.http://news.8btc.com/china-central-bank-to-release-digital-currency-prototype-in-2017

    China doesn`t need a central bank digital currency.They can adopt bitcoin and use itas a government coin.Their control is total,they have the biggest miners.

  • Xester
    5 months ago Xester

    Quote from: xuan87 on January 06, 2017, 11:38:18 PM
    well it won’t affect crypto currency too much, it is just a fiat that being change into digital currency, and the coin is not going to anonymous and it will be centralized, so there is no different with fiat, I don’t think it will be successful, the government won’t succeed to rule bitcoin down, the user used bitcoin because the user want a currency that free from control

    You are right in saying that launching a fiat currency will not affect bitcoin too much. That would be a fact if the country involved is not China. China is one of the country that has biggest hold of bitcoins volume in the world. Aside from having a large number of bitcoin users in the populace and big companies that are in the rich list of bitcoin industry they also have the biggest bitcoin mining farm in the world. It is not yet 100% but there is a possibility that during the launch a big dump on bitcoin will occur and a price meltdown will placed upon bitcoin.This is not something not to be looked upon to, if only it isnt China but it is. And so a panic and a regulation in China will bring about tremendous and huge effect on bitcoin industry.

  • stomachgrowls
    5 months ago stomachgrowls

    Quote from: Xester on January 08, 2017, 12:44:32 PM

    Quote from: xuan87 on January 06, 2017, 11:38:18 PM
    well it won’t affect crypto currency too much, it is just a fiat that being change into digital currency, and the coin is not going to anonymous and it will be centralized, so there is no different with fiat, I don’t think it will be successful, the government won’t succeed to rule bitcoin down, the user used bitcoin because the user want a currency that free from control

    You are right in saying that launching a fiat currency will not affect bitcoin too much. That would be a fact if the country involved is not China. China is one of the country that has biggest hold of bitcoins volume in the world. Aside from having a large number of bitcoin users in the populace and big companies that are in the rich list of bitcoin industry they also have the biggest bitcoin mining farm in the world. It is not yet 100% but there is a possibility that during the launch a big dump on bitcoin will occur and a price meltdown will placed upon bitcoin.This is not something not to be looked upon to, if only it isnt China but it is. And so a panic and a regulation in China will bring about tremendous and huge effect on bitcoin industry.
    Price would eventually go down if China would launch its own digital currency and you are right they hold of the most huge amount of bitcoin as of now and they have the largest company of bitcoin miners and if they tend to jump to their own currency then expect that bitcoins price would largely affected.

  • Velkro
    5 months ago Velkro

    Quote from: hl5460 on January 06, 2017, 09:32:38 AM
    China central bank to release digital currency prototype in 2017http://news.8btc.com/china-central-bank-to-release-digital-currency-prototype-in-2017
    That has nothing to do with bitcoin. Goverment coin is like any sh&&coin out there. Bitcoin is global and has strongest super computer in the world backing it up. They can’t beat this

  • slapper
    5 months ago slapper

    hell no. It will absolutely affect Bitcoin a lot. I believe Bitcoin prices will drop significantly. Although that digital currency is centralized by the government, I doubt that there are still some Chinese who won’t invest in this currency. The China main aim is to rule the world and their people also want China to become the strongest country on the Earth. Poor Bitcoin

  • lambofan
    5 months ago lambofan

    Quote from: Velkro on January 08, 2017, 01:39:09 PM

    Quote from: hl5460 on January 06, 2017, 09:32:38 AM
    China central bank to release digital currency prototype in 2017http://news.8btc.com/china-central-bank-to-release-digital-currency-prototype-in-2017
    That has nothing to do with bitcoin. Goverment coin is like any sh&&coin out there. Bitcoin is global and has strongest super computer in the world backing it up. They can’t beat this
    May sound strange but Chinese controls in many ways BTC, starting with the name of its inventor.

  • ebliever
    5 months ago ebliever

    Quote from: lambofan on January 08, 2017, 08:31:26 PM
    May sound strange but Chinese controls in many ways BTC, starting with the name of its inventor.

    Satoshi Nakamoto is a Japanese name, not Chinese.China has influence over bitcoin, potentially, via the possibility of regulating either mining or bitcoin exchanges. The impact of both would be limited since a strong negative action by the government in either area would lead to offshoring of either the mining or ownership of BTC. So there would be basically a one-time negative event, and then reduced exposure to Chinese influence thereafter.So far as controlling the bitcoin protocol, I don’t see any evidence that China is a significant player in that respect.

  • mrbigmugs
    4 months ago mrbigmugs

    Quote from: Mometaskers on January 06, 2017, 09:11:11 PM
    But then this would be just a digital fiat that they’d use to replace the yuan. I don’t see any advantage in this compared to bitcoin. Well, they can do whatever they want, so long as they don’t interfere with bitcoin’s development and use. If they compel their citizens to exchange their bitcoins for this digital fiat, we could possibly end up with useless bits.
    to me i have no idea about this and i am hearing this for the first time. to me i think chines are in majority to use bitcoin  as compare to other state of the world most of the miners are also from China. but still i do  not think that they can manipulate the price of bitcoin because bitcoin is a universal currency and not a regional one.

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