Despite cryptocurrrency ban in China, the Central Bank Digital Currency is partly being driven by the current surge, as posited by Central Bank.
The latest surge in Bitcoin has renewed interest in the nation’s yuan project and the cryptocurrency space is helping to spawn it own competitors as opined by a representative of People’s Bank of China.
The Foundational principles of Yuan which is a digital currency in China, is antithetical like every CBDC to that of the crypocurrency space.
In an effort of by the government authroities to control easily the flow of money, core crypto concepts of decentralization and autonomy are dispensed with in favour of centralization and oversight . in order to see the entire republic of China m,ake cashless trasanctions in the coming year, the digital yuan is expected to be central to China’s smart city ambitions .
But the PBoC believes the “very strong” interest that the digital yuan is receiving is a result of Bitcoin’s recent ascension to new all-time highs, despite cryptocurrency still being banned in China.
PBoC research bureau director Wang Xin said interest in the digital yuan was driven in part by the ambitions of other countries to follow suit, and also by Bitcoin’s price hike. According to CNBC’s mandarin translation of his comments, Xin said:
“On one hand, this is related to more and more central banks in the world participating in the development of domestic digital currencies. On the other hand, this (interest) may also be related to the large increase in the price of bitcoin.”