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Expert Believes Chinese Currency Could Become Cryptocurrency

ยท 19 Apr 2019 in Breaking, Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

The Executive Chairman of the Blockchain Research Institute, Donald Tapscott, believes that the renminbi (RMB) could become a cryptocurrency. He said that during an interview with Bloomberg a few days ago. The renminbi is the Chinese fiat currency.

The Chinese Currency Could Become a Crypto

Tapscott explained during the interview that there was a meeting with the vice-chairman of the Communist Party in China. The president of China, Xi Jinping believes that Blockchain technology is one of the most important technologies for the future. Indeed, in the past, the Chinese president praised distributed ledger technology (DLT).

According to CNBC, Mr. Xi Jinping said in a speech that blockchain as “breakthrough” applications:

“A new generation of technology represented by artificial intelligence, quantum information, mobile communications internet of things and blockchain is accelerating breakthrough applications.”

Tapscott has also mentioned that China is also considering to ban cryptocurrency mining activities as well. This is something that could affect the crypto market as a whole since around 70% of Bitcoin mining activities are concentrated in China. This would have an impact on the hash rate of the network and the security of Bitcoin as a whole.

“It’s not necessary to do that [banning cryptocurrency exchanges and mining] because in 20 years we are not going to be using Bitcoin in China,” Tapscott commented. “Chinese people will use the RMB, only the RMB will become a cryptocurrency. The central bank of China will turn it into a digital currency.”

Tapscott went on saying that decentralized exchanges will be the future compared to centralized platforms. These decentralized exchanges can identify bad behaviours and be more transparent than centralized ones.  

The National Development and Reform Commission (NDRC) has included mining of virtual currencies as part of the revised list of industrial activities that they have to shut down. The agency explained that crypto mining activities lack safe production condition, waste several resources and pollute the environment.

Mining activities consume large amounts of energy. In China, some industrial parks and cities have been running out of electricity due to the fact that Bitcoin miners were using energy to power the ASIC miners and the cooling systems for these machines.

China is also one of the countries with the largest number of blockchain projects. Some reports show that China has 25% of the total number of blockchain firms around the world. Although virtual currencies and Initial Coin Offerings (ICOs) have been banned in its territory, China continues to work on crypto and blockchain related projects.

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