The People’s Bank of China has noted that it will release its own cryptocurrency, structured to replace cash in circulation, over just generating credit: “PBOC’s intention that the digital currency would replace M0, or cash in circulation, rather than M2, which would generate credit and impact monetary policy. The digital currency would also support the yuan’s circulation and internationalization”.
The People’s Bank of China is “close” to issuing its own cryptocurrency, according to a senior official.
The bank’s researchers have been working intensively since last year to develop systems, and the cryptocurrency is “close to being out,” Mu Changchun, deputy director of the PBOC’s payments department, said at an event held by China Finance 40 Forum over the weekend in Yichun, Heilongjiang. He didn’t give specifics on the timing.
Mu repeated the PBOC’s intention that the digital currency would replace M0, or cash in circulation, rather than M2, which would generate credit and impact monetary policy. The digital currency would also support the yuan’s circulation and internationalization, he said.
In 2017, I posited that Nigeria should do this, explaining how NairaCoin would be an extension of the paper Naira under the full control and supervision of the Central Bank of Nigeria. I expect this to be the convergence for nations when it comes to cryptocurrency.
Rwanda has executed a very fascinating vision and in line with my proposal for Nigeria to have a digital currency (NairaCoin or any other name) that is tied to the Naira and under the supervision of the Central Bank of Nigeria. In Rwanda, I&M Bank has partnered with a Norwegian fintech company, Blockbonds, to launch a blockchain-based banking application called SPENN. SPENN does digitize national currencies and makes it possible for bank customers to perform different types of cost-free transactions. It has digitized the Rwanda currency, making the Rwandan Franc the first national currency to be digitized. It also means that mobile money may fade and being replaced with blockchain digitized currency depending on how this evolves.
With this news, the U.S. Government will flash green light to Facebook Libra. Notice that China wants to take its coin international and use it as a basis for global transfer and remittance. Facebook Libra will be laughing at U.S. Congress, understanding that U.S. Congress is hurting America by delaying its mission!
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We have a compelling reason to have a digital currency tied to Naira: one is to aid transition to cashless economy, the more urgent need is to save money spent in minting paper naira; it’s costing us a lot.
Most Nigerians don’t handle paper naira with care, we squeeze and twist it at will, and many traders have also turned it into a mini notebook; there’s need for an alternative that is durable.
If we are really making upward movement, we cannot be thinking about putting bullion vans on the road, with hoards of naira notes, coupled with mean policemen disturbing public peace; we can do much better!
Nations need their own digital currency, after which they can now ask Libra and co about possible convergence or integration.
Let’s see how China’s plan goes, the US doesn’t like coming second of course.
“Let’s see how China’s plan goes, the US doesn’t like coming second of course.” This is a big wake up call for U.S. This is a big game out there.