China has been developing its cryptocurrency which is currently being tested by China’s Central Bank. Cryptocurrencies are seen as the future which would be of immense benefit to China and the world at large on the basis of its blockchain.
BENEFITS OF DIGITAL CURRENCY
China’s central bank which is the People’s Bank of China has made a breakthrough in cryptocurrency by developing a prototype which will be in circulation within the foreseeable future. The cryptocurrency is scheduled to be introduced together with the renminbi China’s primary currency (yuan).
China presently is creating possible ways to do various mock transactions using cryptocurrency with some Chinese commercial banks that have the technical know how to test run this process.
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It is of immense benefit in the development of digital currency and particularly in China.
Firstly, this will decrease the cost of business transactions and it would make it easier to access financial services. This is a big boost because it will assist several millions of persons that are unconnected to the normal conventional banking system.
Secondly, because it is made to work with the blockchain, it gained the advantage to reduce the rates of fraud and stopping counterfeits, which would aid the government in its attempt to reduce the rate of corruption, a key concern.
Thirdly, this will reduce the stress to obtain or change currency and increase the rate of international transactions leading to doing more businesses and trades yielding to better and faster economic growth.
THE RISE OF CRYPTOCURRENCIES
Since the humble beginnings of Bitcoin’s in 2009, when it valued at around 0.0007 USD. Presently, digital currency and cryptocurrencies have a monumental growth rate. As at the April 1st, 2017, the total value market cap of cryptocurrencies was over $25 Billion. A single Bitcoin now worth over $2,500.
Presently, different national economies, as China’s has shown, other countries have bought the idea and are now working in developing their unique brand.
China’s self-developed cryptocurrency usage in this experimental phase is still the first of its kind even though several countries have had breakthroughs in the development of cryptocurrency.
The Deputy of Russia’s central bank has been emphatical about regulating the rate of exchange of cryptocurrency and stated this: “regulators of all countries agree that it’s time to develop national cryptocurrencies.” This summer over 260,000 stores in Japan has agreed to accept Bitcoin as their legal tender, also a major bank brand like Santander have announced their commitment to developing and their own version.
Cryptocurrencies have a huge prospect to revolutionize not only the business world but will also improve the methods of transacting business.
There’s already a proposal to use cryptocurrencies to administer Universal Basic Income because of its traceability, as well as to be used to deliver humanitarian aid; the potential it has when it was demonstrated in recent times by am an experiment to help refugees in Jordan by the UN.