In Brief China's central bank has developed its own cryptocurrency, which is now being tested. Cryptocurrencies have the potential to not only benefit China, but the rest of the world, due to their basis in blockchain. Benefits of Digital Currency <\/p>\n
Chinas central bank thePeoples Bank of China has developed a prototype of a cryptocurrencythat it could end up in circulation in the nearfuture.It would beintroduced alongside the Chinas primary currency the renminbi (also called the yuan).Chinawill besimulating possible scenarios and running mock transactions using the cryptocurrency with some commercial Chinese banks. Click to View Full Infographic <\/p>\n
The potential benefits of developing a digital currency are significant, particularly in China. First, it would decrease the cost of transactions, and therefore make financial services more accessible, which would be a big help tothe millions of people in the country who are unconnected to conventional banks. Second, as it would be supported by blockchain, it has the potential to decrease the rates of fraud and counterfeiting, which would be of service to thegovernments attempts to reduce corruption a key concern. Third, it would make the currency easier to obtain, which would increase the rate of international transactions, allowing for more trades and faster economic growth. <\/p>\n
Since Bitcoins humble beginnings back in 2009 (when it was only valued at around 0.0007 USD) the digital currency, and the very idea of cryptocurrencies in fact,has grown monumentally. The total market cap of cryptocurrencies on April 1st of this year was over $25 Billion. A singleBitcoin is now worth more than $2,500. Now many national economies, as Chinas plan shows,areconsidering the idea of developing their own variant. <\/p>\n
Although Chinas experimental approach to simulate a self-developed cryptocurrencys usage is the first of its kind, other countries and institutions have made strides in that direction as well. The Deputy of Russias central bank has emphatically statedthatregulators of all countries agree that its time to develop national cryptocurrencies. Over 260,000 stores in Japan will begin accepting Bitcoin as legal tender this summer, and big banks like Santander have announced plans to develop their ownversion. <\/p>\n
Cryptocurrencies have the potential of revolutionizing not only the business world, but manymethods of transaction.There has already been talk of using cryptocurrencies to administer Universal Basic Incomesdue to their traceability, as well as for thedelivery of human aid; the potential for which was demonstrated bya recent experiment to help refugees in Jordan by the UN. <\/p>\n
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