Sino Global Capital CEO Matthew Graham said the development of China’s central bank digital currency has nothing to do with the general cryptocurrency market.
Sino Global Capital首席执行官Matthew Graham表示，中国在央行数字货币方面的发展与一般加密货币市场无关。中国数字人民币的发展和Libra的计划几乎是比特币的对立面。它们的工作原理和目的完全不同。比特币是一种去中心化的资产形式，中国的DCEP将完全由中国人民银行控制。https://t.co/u1Nr4uHIuq
— Matthew Graham (@mg0314a) January 10, 2020
In his opinion, the development of the digital yuan and the Libra plan are almost the opposite of Bitcoin.
While the cryptocurrency community appreciates the benefits of Bitcoin such as decentralization, deficit, anonymity, developers of other blockchain projects criticize the first cryptocurrency.
The only way to make money better is to give individuals at least some sovereignty at the most basic level, and Bitcoin is great for this role.
“Bitcoin is a form of decentralized assets, and China’s DCEP will be fully controlled by the People’s Bank of China,” posts Matthew Graham.
Earlier, the head of the Digital Currency Research Institute at the People’s Bank of China (PBoC) Mu Changchun noticed these varieties. He noted that unlike Bitcoin and stablecoins, the Chinese national cryptocurrency will not be a speculative tool.
Note that representatives of the People’s Bank of China said that the national cryptocurrency will be very similar to the stablecoin Libra from Facebook. Recall that the asset of the social network is provided with a basket of currencies.
A day earlier, the vice president of the Libra Association consortium, Dante Disparte, said that
Bitcoin is insolvent as a means of payment, which is why Facebook developed the stablecoin Libra. He stated this at the CES summit in Las Vegas.
According to him, Bitcoin proved that an asset can be popular due to only one artificially created deficit, but it is simply not a means of payment. Disparte said that the bottom step of the ladder is economic access to payments, and Bitcoin has problems with this.
Decred Project Strategy Director Akin Sawyerr, who also participated in the discussion, did not agree with the consortium’s vice president.
He said that the only way to make money better is to give individuals at least some sovereignty at the most basic level. According to Sawyerr, a consortium of companies pursuing their own interests will cope with this task worse than a decentralized system.
Chinese Efforts On Blockchain Technology
As for the digital Renminbi, its release can be implemented later this year. Note that despite the launch of the Chinese national cryptocurrency, the launch of Blockchain Service Network (BSN) will be implemented in 2020 too.
Recall, BSN is a national network of blockchain services. The project is organized by SIC specialists. The initiative aims to unite the forces of industry representatives. In particular, the companies united under the BSN will be engaged in the development of smart cities and the digital economy of China. Another objective of the project will be to reduce costs associated with the implementation of new technologies.
As of early January 2020, BSN participants are a number of large Chinese companies, including China UnionPay, China Mobile, and China Telecom.
Recently, experts from the popular Huobi Digital Assets Exchange joined the project.