TL;DR Breakdown
- China is thinking about launching a digital asset exchange platform in Beijing.
- The exchange platform has a specific aim of promoting the use of digital Yuan.
- Efforts to speed up the creation of Central Bank Digital Currency are high, with players working around the table to achieve it.
People’s republic of china is thinking about putting up an exchange for trading digital assets in Beijing. Apart from trading on virtual assets, the exchange aims to promote the use of the digital Yuan.
Recently, there has been a speedup of efforts to develop its Central Bank Digital Currency. For example, the executive has directed quicker trials. Also, they have forced financial institutions to put up relevant structures with firms.
A digital yuan for digital dominance
China has a plan to become the blockchain powerhouse within five years. So, a digital yuan is among the latest efforts to achieve this ambition. The country aims to Nationalize the industry by banning private cryptocurrency. Instead, they are encouraging the adoption of the digital Yuan.
At the beginning of the year, CHN gave some guidelines for blockchain development. The board of industry and information technology. And the Cyberspace Affairs office gave the guidelines. The directive aims to make china’s blockchain the most vibrant worldwide. Their game plan to achieve this was simple. They felt mixing blockchain into the country’s economy would lead them there.
The move shows the motive of China’s efforts to ban cryptos and related actions within its borders. China had the highest hash rates when it came to crypto mining. Yet, the government banned every crypto-related activity.
Besides, the Peoples Bank of China also gave another order on cryptocurrencies. They banned any business involving cryptocurrency operating in mainland China.
Moreover, it blocked all firms dealing in crypto. Thus, it left no room for any investor around the enterprise. To seal crypto’s fate, China’s National Development and Reform Commission also blocked crypto mining.
China wants its digital legal tender
The journey of creating a Chinese digital version of legal tender has been ongoing. The process is almost seven years. Over the past year, China has been doing several trials in several cities. The trial aimed to encourage the use of digital Yuan between traders and their clients.
Despite negative feedback from the trials, the authorities are not relenting. The process is kept in motion without holding even the most minor advice from other quarters. So far, the Chinese authorities are planning to roll out the project en masse. The government is being strategic with the launch. They are settling to launch the digital Yuan during the winter Olympics in Beijing next year.
The launch of a digital yuan-based exchange will be a tremendous blockchain advancement. It would open up CHN to the world’s four quarters, making them handle business with no worries.
China’s determination to dominate the blockchain industry is incredible. Already they have a roadmap of being there. But, time will tell if they will succeed.
