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Cyber Bitcoin
Edited by qqqpeter at 2019-8-19 11:05

Hong Kong e-zone reported that the application of virtual/cryptocurrency has attracted the attention of all countries. Mu Changchun, deputy director of the People's Bank of China's payment and settlement department, said that in terms of system development, the central bank's digital currency can now be said to be ready. It is China’s decision to introduce cryptocurrency at the national level.

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When Facebook issued cryptocurrency was blocked, and the Chinese government objected to the market cryptocurrency, what is the statement about cryptocurrency this time? Mu Changchun said at the Yichun Forum for 40 Chinese Financers that the research on digital currency and electronic money began in 2014, and some results have been achieved.

However, from Mu Chang’s speech, it can be seen that China’s digital currency and the cryptocurrency in the global market may not be the same in nature and operation. When Trump just pointed out that China is a currency manipulator, this is the definition of a more open digital currency in China will be different.

Mu Changchun mentioned in his speech that the PBC's digital currency research team initially made a prototype and completely adopted the blockchain architecture. However, it was found that the performance might not catch up with the demand. He quoted examples as saying last year. During the Double Eleven promotion, the online transaction peaked at 92,771 transactions per second, while Bitcoin was 7 times per second, and Ethereum was 10 to 20 times per second. Libra on Facebook according to the white paper issued, it is 1,000 times per second.

Mu Changchun pointed out that the issuance of digital currency in a large-scale country like China, using a pure blockchain architecture can not achieve the high performance required by retail. So in the end, they decided that the central bank should maintain neutrality in technology and not presuppose technical routes, which means that it is not necessary to rely on a certain technical route.

According to Mu Changchun's argument, China's digital currency will not necessarily adopt the blockchain technology of universal cryptocurrency. In nature, the digital currency issued by the People's Bank of China is designed by the current central bank digital currency, so it will replace M0. Instead of M1 and M2, the market estimates that such digital currencies are closer to the digitization of traditional currencies than we understand Libra like Facebook.

However, in any case, when we wait for the actual operation of the currency, we can understand how much it affects the market.


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