China Set To Launch Own Online Virtual Currency

China has decided to kick online currency Bitcoin while it’s down by proposing the launch of an official virtual money system.

The people’s Bank of China banned Bitcoin from China in 2013, citing concerns about keeping track of users and money laundering.

Now, the bank has announced that since then a specialist team has developed an online currency strategy.

When the banning notice was issued stopping Chinese domestic banks from trading in Bitcoin, China was the virtual currency’s largest market.

The move does not bode well for Bitcoin, as the Chinese are likely to keep the door closed on the currency in favour of their own system.

Controlling money supply

The People’s Bank said: “Our research team has developed a framework for a new virtual currency and is now pushing on to set up objectives for a launch and overcome the technical barriers.”

The bank is collaborating with foreign banks to work out how a virtual currency can sit alongside card and cash based systems.

Officials also explained that switching to an online currency helped the government to control money supply and cut the costs of managing paper money.

No dates have been given for the release of the yet unnamed currency, but the order has been given to go ahead as soon as possible.

The move comes at an important crossroads for Bitcoin.

Bitcoin has failed, says developer

Leading Bitcoin developer Mike Hearn claims Bitcoin has failed as the price continues to fall.

In December 2014, one Bitcoin was worth US$1,147. Today the price is around $383.

The objective for Bitcoin was to be free of regulation by any central bank and for the price to float freely.

The ideals were hijacked by crooks who could operate freely in an unregulated space to rip off genuine investors.

The short history of Bitcoin is littered with fraud and scandals.

The Chinese version is likely to be much different. Firstly, the currency will be regulated by China’s central bank and supply and the value will be closely monitored by the state as well.

Chinese technology also has a reputation for being clunky.

The government has tried to develop versions of search engines, computer operating systems and other popular software and most have failed or been plagued with technical issues.

Stay Connected

Latest News

Difference Between Residence and Domicile

For British expats, their residence and domicile determine how much tax they are likely to pay, both in the country where they...

QROPS, Qualifying Recognised Overseas Pension Scheme

QROPS is a type of pensions that were designed to cater for the needs of British pension holders that move out of...

Where Do British Expats Live?

More than 5.5 million people from Britain live overseas and leave the country at a rate of around 2,000 a week.

Living In The Philippines, A Guide for Expats

Brilliant weather, a low cost of living and friendly, English speaking people makes The Philippines a popular destination for British expats.

Living in Dubai, A Guide for Expats

Living in Dubai is the dream for thousands of expats enjoying a luxury lifestyle, high salary and a no tax income.

Secrets of James Dyson Britain’s Richest Man

Billionaire Inventor James Dyson Is Now Britain’s Richest Man. What’s his secret? In this video I explain his 4 secrets



Please enter your comment!
Please enter your name here