Topic: China’s Digital Fiat is Not a Crypto ?? - page 2. (Read 363 times)
You should not rely on the fact that China will create a decentralized cryptocurrency or accept Bitcoin and absolutely will not control them at all. We must not forget that this is a country with a rigid dictatorship of the Communist Party with full control of all areas of the country's economy. For those who did business with China, it is clear that this country is not like any of the European countries or the United States. All state coins will be centralized and will never have what Bitcoin has - decentralization and independence.
If it is not a blockchain project, not a cryptocurrency and not a decentralized coin, then I tell you mate that whatever it is that china is creating is nothing inspired by bitcoin at all, I just see is china creating another digital payment coin, so they would just supported alibaba payment and just introduce this as their digital Yuan.
If it is not crypto, then the usage will mostly be limited to their citizens alone, and that would still not stop their citizens from using cryptocurrency since this coin they are creating cannot give them the benefit that people get from crypt, and they can never be able to take their mind away from crypto. The coin they are creating, will it at any point reward the holders? Will it be able to serve as store of value like bitcoin and some other coins that have enriched people?
If it is not crypto, then the usage will mostly be limited to their citizens alone, and that would still not stop their citizens from using cryptocurrency since this coin they are creating cannot give them the benefit that people get from crypt, and they can never be able to take their mind away from crypto. The coin they are creating, will it at any point reward the holders? Will it be able to serve as store of value like bitcoin and some other coins that have enriched people?
Agreed 100% I don't see how or why people have started linking China's digital currency to Bitcoin or Blockchain. It is just another digital currency, only backed by a country, unlike Bitcoin or most cryptos. This currency would not be like Pedro, I think that's what has most people confused. China likes to have an iron grip over its currency, creating a decentralized digital currency would be so much against their nature.
It's China for God's sake, they already abandoned Bitcoin and chooses a lot of altcoins. They have a hate relationship on Bitcoin since 2017. As regards for their Digital Fiat, obviously it's not crypto and it functions like Libra coin, fully centralise with government back-up. So that alone doesn't fit the definition of crypto in my book. But that is ok, we know where China is coming from, they won't allow their people to have full control and freedom from within that Bitcoin gives. So they have to find a way to satisfy the Chinese people but at the same time, gain back the control. And besides, we haven't seen a "crypto' that is back up by the government succeeded so I guess history will decide.
China staying away from crypto has really helped it developed. I could remember in 2016 when China were influencing the crypto market through attacked by people’s bank of China and when I did not hear much from them in 2017 bitcoin was able to get over $1000 and since then till now it has been in the uptrend. I am happy that we could survive without help from China and if China has decided to have their digits currency that will reduce the power of bitcoin, I don’t think also that it should be a concern to us as for long she has been against it and not today. 
It's China for God's sake, they already abandoned Bitcoin and chooses a lot of altcoins. They have a hate relationship on Bitcoin since 2017. As regards for their Digital Fiat, obviously it's not crypto and it functions like Libra coin, fully centralise with government back-up. So that alone doesn't fit the definition of crypto in my book. But that is ok, we know where China is coming from, they won't allow their people to have full control and freedom from within that Bitcoin gives. So they have to find a way to satisfy the Chinese people but at the same time, gain back the control. And besides, we haven't seen a "crypto' that is back up by the government succeeded so I guess history will decide.
The chief aim of cryptocurrencies is decentralization, I don't even think Libra is a cryptocurrency.
I think what really make a coin a crypto is because it is built with blockchain, but they can still operate in without anonymity, just like we still have lots of currencies in the market that cannot be classified as a decentralized coin but they are still cryptocurrency, look at tether and the rest of stable coins, all of these can never claim that they are decentralized because they are being controlled.The only coins that I see fully working according to the plan of satoshi are privacy coins, and we have very few of them, so Facebook can still call their coin cryptocurrency without that anonymity because I feel that is also what china is also trying to achieve. They already have Alipay so there would not have been any need for them to create another payment system if it was not crypto.
The chief aim of cryptocurrencies is decentralization, I don't even think Libra is a cryptocurrency.
Nice input which i do see the same way.Any coins just masking out the word or face of cryptocurrency but the real thing into its back is a heavily centralized one isnt considered to be a crypto yet we know the main aim of these coins why its being created which is decentralization.If government or country does make their own coin using up blockchain tech but a heavily centralized one then its no different from traditional fiat system.
The chief aim of cryptocurrencies is decentralization, I don't even think Libra is a cryptocurrency.
The purpose of cryptocurrencies is possibltiy of transactions without any need to third parties. We want cryptocurrencies to be independent from banks when we make transactions.
If a government creates a crpytocurrency, the main advantage of that cryptocurrency is ignored. No government will create a cryptocurrency. They won't create something that make people independent from them.
If a government creates a crpytocurrency, the main advantage of that cryptocurrency is ignored. No government will create a cryptocurrency. They won't create something that make people independent from them.
It is something like electronic cash, but of course it is not a cryptocurrency that works on a blockchain.
It is a centralized payment solution that will allow China goverment track their residents more closely.
If USA has PayPal then China will surely create something of their Own as they are building own world inside Asia and will soon dominant worldwide It is a centralized payment solution that will allow China goverment track their residents more closely.
They want to strengthen Yuan in another form to compete globally that’s why they are creating this electronic Fiat but until this wasn’t done then all of our comments here are speculation,though o truly believe that the are capable and ready to create something like this.so for the Chinese cryptonian out there please update in this thread any information and update regarding this as I believe this will have effect in our community here
If it is not a blockchain project, not a cryptocurrency and not a decentralized coin, then I tell you mate that whatever it is that china is creating is nothing inspired by bitcoin at all, I just see is china creating another digital payment coin, so they would just supported alibaba payment and just introduce this as their digital Yuan.
If it is not crypto, then the usage will mostly be limited to their citizens alone, and that would still not stop their citizens from using cryptocurrency since this coin they are creating cannot give them the benefit that people get from crypt, and they can never be able to take their mind away from crypto. The coin they are creating, will it at any point reward the holders? Will it be able to serve as store of value like bitcoin and some other coins that have enriched people?
If it is not crypto, then the usage will mostly be limited to their citizens alone, and that would still not stop their citizens from using cryptocurrency since this coin they are creating cannot give them the benefit that people get from crypt, and they can never be able to take their mind away from crypto. The coin they are creating, will it at any point reward the holders? Will it be able to serve as store of value like bitcoin and some other coins that have enriched people?
China may be about to launch a fiat digital currency, but in all likelihood, it will only resemble a cryptocurrency on the surface.
And it probably won’t use a blockchain. While inspired to some degree by bitcoin and the like, the effort is explicitly framed as a strategy to beat them back.
The project was thrust into the spotlight last weekend when a senior official from the People’s Bank of China (PBoC) said at a closed-door conference that the country’s central bank digital currency (CBDC) is ready to launch.
The CBDC aims to replace M0, meaning cash in circulation, via a two-tier system: the central bank issues the digital yuan only to commercial banks, who will further issue it to the public, Mu said. This approach is perhaps unsurprising since Yao Qian, the former chief of the research lab, hinted at this design in an op-ed published in CoinDesk in 2017.
However, one comment from Mu that got overlooked by many is that he believes “the two-tier issuance system will be helpful to restrain the public’s demands for crypto assets and strengthen the country’s sovereign currency.”
Mu did not elaborate on how everyday users would interact with this proposed mechanism or to what extent the CBDC really employs distributed ledger technology. And it remains unclear when the central bank plans to test and roll it out or, upon its launch, whether it will be optional or mandatory for Chinese consumers.
But dozens of patent applications submitted by the research lab to China’s State Intellectual Property Office reviewed by CoinDesk offer a window into the PBoC’s thinking on how the system may function and its similarities and (more importantly) differences with crypto.
Crypto-inspired
The PBoC’s Digital Currency Research Lab was formally launched in the summer of 2017 and spearheaded by Yao Qian, although Mu indicated the work has been ongoing for five years. Yao left the position for a different agency around October 2018.
To date, the lab has filed more than 50 patent applications, all either invented or co-invented by Yao, and about 20 of those focus on design specifications of a so-called digital currency wallet.
Each document covers a specific technology feature of the proposed system, ranging from how to apply for and create a wallet, how to transfer money to and from saving accounts, how a peer-to-peer transaction is verified, etc.
The goal is to build a wallet to store digitized yuan that is unlike the electronic wallets of any bank or third-party payments application. Those wallets, one patent document says, are “merely an extension of assets held in custody at a bank account.” As such, the approach borrows the idea from bitcoin of a peer-to-peer transaction system where users possess private keys to control the asset.
One patent application, entitled “a method and system for enquiring digital currency transaction information” filed on Dec. 28, 2017, describes a digital currency wallet that aims to bridge the gap between existing electronic wallets and “private quasi-digital currency wallets, like that of bitcoin.”
The former is not an independent wallet, which may incur security issues, and the latter, while allowing users to personally possess their assets, does so in an anonymous way with transactions of that can’t be reversed, the document further states.
KYC-ed digital yuan
And one crucial way to optimize such circulation appears to be stripping the anonymity feature of cryptocurrencies and including a know-your-customer (KYC) process required by other payment methods.
So far, physical cash is arguably the only form of fiat money inside China that can remain anonymous, compared to bank wire or third-party methods offered by companies like Alibaba or WeChat – both requiring real-name verification authenticated by users’ IDs and banking information.
“Existing M0 (banknotes and coins) are subject to counterfeit and money laundering risks. … The [CBDC] system should follow the existing rules about anti-money laundering and anti-terrorism financing imposed on cash, and should report to the PBoC on large amounts and suspicious transactions,” Mu emphasized during his speech.
His note echoes the design specifications entailed by various patent applications for the proposed peer-to-peer digital currency wallets.
For example, the patent application on how to apply and create digital wallets filed on Dec. 28, 2017 stated that the system lets users apply through their banks and the creation of such digital currency wallets will be registered at the issuance organization.
Another document detailing how to redeem the CBDC from saving accounts filed on June 26, 2017 explained that after a user sends a request to withdraw money from their saving accounts – similar to withdrawing from an ATM, except now it’s not cash but in a p2p wallet – the corresponding issuers will need to verify a user’s ID before granting the redemption.
And after that, when a user initiates a payment transaction from the independent digital wallet, a third party will verify who is sending how much to whom.
In addition, another document specifies a system that aims to customize a tracking solution to make the CBDC traceable even across multiple owners and layers.
All of this, of course, is a far cry from bitcoin, where there is no central authority, anyone can download software and create a wallet without presenting ID, and payments can be made without any middleman’s permission.
Decentralized no more?
Another open question is to what degree the PBoC’s digital currency system may include the features of blockchain, if at all.
One of the earliest patent documents filed more than two years ago detailed that the central bank did at one point explore the idea of using a distributed network to manage nodes for verifying transactions.
“This technology would empower smart contracts on a blockchain infrastructure to dynamically manage nodes in the network to ensure they share and transact the same data with security and scalability,” the doc stated.
(From: https://www.coindesk.com/is-chinas-digital-fiat-a-cryptocurrency-heres-what-we-know )
And it probably won’t use a blockchain. While inspired to some degree by bitcoin and the like, the effort is explicitly framed as a strategy to beat them back.
The project was thrust into the spotlight last weekend when a senior official from the People’s Bank of China (PBoC) said at a closed-door conference that the country’s central bank digital currency (CBDC) is ready to launch.
The CBDC aims to replace M0, meaning cash in circulation, via a two-tier system: the central bank issues the digital yuan only to commercial banks, who will further issue it to the public, Mu said. This approach is perhaps unsurprising since Yao Qian, the former chief of the research lab, hinted at this design in an op-ed published in CoinDesk in 2017.
However, one comment from Mu that got overlooked by many is that he believes “the two-tier issuance system will be helpful to restrain the public’s demands for crypto assets and strengthen the country’s sovereign currency.”
Mu did not elaborate on how everyday users would interact with this proposed mechanism or to what extent the CBDC really employs distributed ledger technology. And it remains unclear when the central bank plans to test and roll it out or, upon its launch, whether it will be optional or mandatory for Chinese consumers.
But dozens of patent applications submitted by the research lab to China’s State Intellectual Property Office reviewed by CoinDesk offer a window into the PBoC’s thinking on how the system may function and its similarities and (more importantly) differences with crypto.
Crypto-inspired
The PBoC’s Digital Currency Research Lab was formally launched in the summer of 2017 and spearheaded by Yao Qian, although Mu indicated the work has been ongoing for five years. Yao left the position for a different agency around October 2018.
To date, the lab has filed more than 50 patent applications, all either invented or co-invented by Yao, and about 20 of those focus on design specifications of a so-called digital currency wallet.
Each document covers a specific technology feature of the proposed system, ranging from how to apply for and create a wallet, how to transfer money to and from saving accounts, how a peer-to-peer transaction is verified, etc.
The goal is to build a wallet to store digitized yuan that is unlike the electronic wallets of any bank or third-party payments application. Those wallets, one patent document says, are “merely an extension of assets held in custody at a bank account.” As such, the approach borrows the idea from bitcoin of a peer-to-peer transaction system where users possess private keys to control the asset.
One patent application, entitled “a method and system for enquiring digital currency transaction information” filed on Dec. 28, 2017, describes a digital currency wallet that aims to bridge the gap between existing electronic wallets and “private quasi-digital currency wallets, like that of bitcoin.”
The former is not an independent wallet, which may incur security issues, and the latter, while allowing users to personally possess their assets, does so in an anonymous way with transactions of that can’t be reversed, the document further states.
KYC-ed digital yuan
And one crucial way to optimize such circulation appears to be stripping the anonymity feature of cryptocurrencies and including a know-your-customer (KYC) process required by other payment methods.
So far, physical cash is arguably the only form of fiat money inside China that can remain anonymous, compared to bank wire or third-party methods offered by companies like Alibaba or WeChat – both requiring real-name verification authenticated by users’ IDs and banking information.
“Existing M0 (banknotes and coins) are subject to counterfeit and money laundering risks. … The [CBDC] system should follow the existing rules about anti-money laundering and anti-terrorism financing imposed on cash, and should report to the PBoC on large amounts and suspicious transactions,” Mu emphasized during his speech.
His note echoes the design specifications entailed by various patent applications for the proposed peer-to-peer digital currency wallets.
For example, the patent application on how to apply and create digital wallets filed on Dec. 28, 2017 stated that the system lets users apply through their banks and the creation of such digital currency wallets will be registered at the issuance organization.
Another document detailing how to redeem the CBDC from saving accounts filed on June 26, 2017 explained that after a user sends a request to withdraw money from their saving accounts – similar to withdrawing from an ATM, except now it’s not cash but in a p2p wallet – the corresponding issuers will need to verify a user’s ID before granting the redemption.
And after that, when a user initiates a payment transaction from the independent digital wallet, a third party will verify who is sending how much to whom.
In addition, another document specifies a system that aims to customize a tracking solution to make the CBDC traceable even across multiple owners and layers.
All of this, of course, is a far cry from bitcoin, where there is no central authority, anyone can download software and create a wallet without presenting ID, and payments can be made without any middleman’s permission.
Decentralized no more?
Another open question is to what degree the PBoC’s digital currency system may include the features of blockchain, if at all.
One of the earliest patent documents filed more than two years ago detailed that the central bank did at one point explore the idea of using a distributed network to manage nodes for verifying transactions.
“This technology would empower smart contracts on a blockchain infrastructure to dynamically manage nodes in the network to ensure they share and transact the same data with security and scalability,” the doc stated.
(From: https://www.coindesk.com/is-chinas-digital-fiat-a-cryptocurrency-heres-what-we-know )
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