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Renminbi, Official Chinese Currency to Become Cryptocurrency, Expert Says


The executive chairman of the Blockchain Research InstituteDonald Tapscott stated that the official Chinese currency, the Renminbi [RMB], will become a cryptocurrency. He revealed the news in an interview with Bloomberg on April 17.

In the interview with the media giant Bloomberg, Tapscott shared that he had been at a meeting with the vice-chairman of the Communist Party in China recently. He revealed that president Xi Jinping considers that blockchain is one of the most valuable technologies for the future of the country.

Tapscott was speaking about the government’s ban on cryptocurrency exchanges, Tapscott noted that the country is taking in to account to ban cryptocurrency mining as well,

He explained, “It’s not really necessary to do that [to ban exchanges and mining] because in 20 years we are not going to be using bitcoin in China. 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.”

When he was asked if decentralized exchanges can function in China, which has banned initial coin offerings [ICOs] previously, Tapscott further noted that they could, although the government has a serious approach towards diminishing cryptocurrencies.
According to Tapscott, decentralized exchanges will control centralized ones in the long run, thanks to their reported potential to transparency and identify “bad behavior.” All assets, including conventional ones like securities, will allegedly be on decentralized exchanges, Tapscott added.

The authorities of China have long been discussing possible ban of cryptocurrency mining. According to the reports, National Development and Reform Commission [NDRC] has included crypto mining as part of its draft for a revised list of industrial activities the agency plans to shut down because they “lacked safe production conditions, seriously wasted resources, polluted the environment,” among other potential issues.

Although the country stands as an important player in the bitcoin market with most number of the largest bitcoin mining pools controlled by local organizations. Reports suggest that the popular crypto mining operator Bitmain reportedly operated as many as 11 mining farms in China by mid-2018. The bitcoin miner would be impacted largely by the NDRC’s plans.

Reportedly China is leading the world in the number of blockchain projects currently in progress in the country. From the data obtained, there are 263 blockchain-related projects in China. It accounts for 25% of the world’s total blockchain projects.

Image Credit: Britannica