Topic: China's Central Bank planning Fraud coin (Read 577 times)

Why do you call that a fraud? From what I read, I think the Chinese government are on point and are doing the right thing to control fraud.

It seems you don't understand various things. Bitcoin is decentralized, so this is not about Bitcoin, Bitcoin is perfectly fine, and its not replacing private banks with a state bank. With Bitcoin banks are optional...

The communist part is about centralized coins, this you fail to understand how bad centralized coins are. You think they can't undo your transactions? Yes they can, so its the same as you not owning anything in the first place. There is no such thing as a good centralized crypto, sorry to break your dreams. The whole point of centralization is you are not the master of anything; they are, yes they can seize your funds, freeze them or undo your transfers at anytime, and they don't even need your keys for that (with Petro you don't even get the private keys), they control their blockchain.

This happens to fit quite fine with abolition of private banks in favor of a State Bank, just like the manifesto says. Marxist communism (not anarchist) is all about a giant police State controlling (commanding) things, pretty much a police state, like in fact was tried in several countries of the former soviet bloc; tho they like to call it "a transition period" towards communism, and actually call it the "socialist" stage.

You miss the point where centralization ruins crypto. This is why i clearly said coins like Libra and Petro are utter and absolute garbage. Libra is private owned, and Petro is State owned, so there you get two extremes with the same (failed) result. While Bitcoin is also private owned, its ownership is spread into several many more people, with a bias to those that invested earlier; which makes it very difficult to change without consensus, but not impossible. It is too expensive to try to "attack it", which is the beauty or PoW. While technically possible, you will end spending more money than whatever you planned to obtain by performing the attack in the first place.

See, even if "now" governments see the importance of Bitcoin and try to buy it, most of it is already in the hands of people. And would be it too expensive to attempt to buy half of it to pull a 51% attack.

Perhaps they will succeed. After all, the people of China are happy with any new innovation, even if this area is controlled by the state

Just for an example: think about them having their own fork of bitcoin, whereas they have 100% of the hashrate and they have 100% of the developers. Yeap, total control over everything, including them having full view of the blockchain because of it being completely transparent(though I'm not sure if China's coin will be transparent). That way, mass surveillance will be a lot easier because they wouldn't need to demand data from payment processors like WechatPay.

It's mainly so they they would have more control over the currency, which is really nothing unexpected when talking about such a communist country like China. They most likely want something like Bitcoin, but since they can't control Bitcoin, they create their own coin so they could gain control.

What is meant by the terms, a fraud coin? It's just their own coin isnt it?

They are playing this pretty smart, especially with their views on decentralization and BTC. It's definitely not good for the crypto community, but them being able to capitalize on the blockchain trades whilst still being able to cancel out decentralization.

This is what I'm more interested in.

5 years of development? That means they've been looking into blockchain technology and have had an idea of making their own coin for a long time. I'm quite surprised with this.

I don't understand your point. It's the main goal of Bitcoin and all the cryptocurrencies to replace the banks, so why are you saying it's a kind of "communist" plan?   I think being the real owner and master of its funds, is more liberal than communist.
And even if it is a centralized blockchain, if the protocol doesn't allow to seize funds in wallets (like all cryptocurrencies), users remain the only owners of their funds.

For Bitcoin how do you want it to become the money of a 1.5 billion inhabitants country with only 7 transactions per second  

Libra coin does not create serious competition to anyone, only Bitcoin does. Like the Petro, its yet to be seen what they come up with, as i explained before, if its anything even remotely resembling Petro, its garbage, like Libra, due to centralization which makes it worthless unlike Bitcoin that cannot be shutdown.

You could argue the Chinese State is harder to shutdown than Facebook, but you miss the point that, the next party leader may order the coin shutdown and that is that. Here the point is, no one can do that to Bitcoin, not even the core team or Satoshi.

So, I'd say it was predictable. Governments will try to use the blockchain tech and crypto for their own purposes.

I don’t understand why to create her.That's really if you look even from a position of government,then there is no point in creating crypto-yuan,crypto-dollar. Perhaps just the meaning will appear only if the country will impose some sanctions.

Lol, if they are passing those bills to create a digital currency covert fraud, then they will be defrauding their citizens and some stupid gullible international investors which it would not be a bad idea for them to dupe them for something that I will call a little of their foolishness, because I don’t know what they do not understand about the system of bitcoin that it can be used anonymously no matter how much the government think they can clamp down on the users.

If china is coming with their crypto, then fine, if it is India, then fine, I just need them to take their eyes of bitcoin and leave it for many people who already believe in the system and would continue to use it forever. Bitcoin will still outshine any system they create whether they like it or not.

So true. China wants to benefit from new tech and remain a leader in this area, but it does not strike me as a country ready to give up some control and let people be free at least in some areas. So suppressing other cryptocurrencies and making their own seems logical. And another person mentioned that India seems to be taking the same approach. I don't know, I guess it's still better than relying on fiat, but I hope people won't give up on their freedom so easily and will be more demanding about the well-recognized cryptocurrencies or at least Bitcoin. Unfortunately, though, I bet most people would prefer governmental crypto rather than a free-market one because they want to see someone responsible, and the currency that is going to be stable.

Why do you think it's a good idea? How do you think would the new "coin" benefit the people of China compared to just using CNY? China having their own coin is just going to increase their surveillance and control, which is almost never a good thing for the people.

Most "fraud" are commited with Fiat currencies and through the Banking system, so with China being a "Police" state, you would figure that a Blockchain based solution would offer them more control over the tracking of money in their country, thus reducing the fraud that are done with Fiat currencies.  

Their coin will be centralized and 100% controlled by the Chinese government, so it is exactly what they need to control the economy and the flow of money in their country.  

The Chinese government is about to issue its own stable coin based on its yuan. I do not see anything bad and fraudulent in this. They have been working on this for the past few years and this decision was accelerated by Facebook's intention to issue a similar stable Libra coin, which would create serious competition for China's financial system. Therefore, the Chinese government is acting quite logically and predictably.

It is agreed by most individuals that most cryptocurrency projects are manipulated. there are no facts to these opinions and but then taking a closer look at the cryptocurrency space within the last two years, one is left with no other choice but to concurr to the fact that fraud exists within the space, but even at that I do no see a country as China participating in such as they already know the implications of such actions to their reputations and not even now that china is in a cold trade war with the USA

Well, the government will ensure that their country will exist regardless of what will happen to its people.  So by implementing a digital coin, I think China, failing to control Bitcoin will go to something that they can control to fully utilize the effectiveness and benefits for their country.  In a government point of view, I will never make Bitcoin as my country's core cryptocurrency because it will de-estabilized the country's economy due to some people holding majority of it.  I can accept it as alternative but not the main cryptocurrency.  So I kinda understand why China creates its own.

Depends, if not decentralized, as most States like it, then its the State assuming the role of bank, not you. They made sure to do that in Venezuela with the Petro Fraud coin.

For communists following the manifesto, it makes perfect sense. The State is supposed to end all banks and be the only bank...

And i think that's a step backwards, not forwards. If they do copy Bitcoin or straight adopt it, then yes, else, no. If they do copy Bitcoin, you have to carefully inspect what changes they have made, and often, they love to not respect the rules of free open source software (go sue them if you can), so the keep the changes hidden (In Venezuela it even violates a law made by themselves, but they don't care). So assuming they are transparent and release the code and all its changes, we can then make an educated opinion for the new State altcoin and its worthyness.

It always depends, but more often than not, it ends worse. Its best if they just adopt Bitcoin or at lease one of its closest clones.

I guess that would be the case if every country would have its own Cryptocurrency and using their control over it and it can be the doom for fiat money if all country would implement and would change it to cryptocurrency that is established by each country,

I guess China is thinking of controlling and being the first country to establish its own cryptocurrency just like Bitcoin did in the past they might become a bigger country that has a cryptocurrency of their own that have a much higher price, Well, they are preparing for this 5 year from now so it  might work well, but I am not so sure about that only time can surely tell.

Did anyone doubt that the chinesses would create their own shitcoin? They are expert in Copy/Paste anything that is created or invented by other countries. If someone creates a teleport machine, china will not use it, they will prefer to create their teleport machine with another version (maybe worse or better, but surely Copy/Paste). Which leads me to ask the following:

- Now that they will create their shitcoin, how will the bitcoin situation in china look? Will they allow bitcoin to compete with your shitcoin? or are they still afraid of bitcoin being accepted more than their shitcoin?