Ever since Facebook's introduction of Libra in June, there has been a noticeable shift in the crypto realm. Many industry folks are now eyeing China, speculating that the country is close to launching its unique state-run digital currency.
High-ranking officials from China hinted that Beijing was nearing the unveiling of a national cryptocurrency.
A considerable number of individuals accepted these reports as truth. However, as these reports circulated the web, China's big financial institution, The People's Bank of China (PBoC), remained silent. But for the first time, the PBoC eventually addressed these speculations, firmly stating they're not true.
Not Ready to Launch Its Crypto Yet
In an An official notice made its rounds on Wednesday, from the PBoC, which explicitly clarified that the 'online news' suggesting they've introduced a legal digital currency is completely false. Here's a basic version of their statement:
The People's Bank of China has yet to release any official digital currency (DC/EP) and has not given any trading platforms permission to facilitate transactions. Since 2014, we’ve been examining the notion of a legal digital currency and continue to explore and evaluate its potential.
The People's Bank of China wasn’t done with clarifying yet. The central bank emphasized that both local and international reports claiming the launching of 'DC/EP' or its newly coined name, Digital Currency Electronic Payment (DCEP) by Chinese media, are ‘mistaken’.
This remark appeared to address several reports by mainstream Western media suggesting that DCEP would be rolled out in the imminent months. One such report came from CNBC pointed to HCM Capital's managing partner, Jack Lee, predicting that the PBoC digital payment network might become operational within the next two to three months.
Forbes published Another narrative from August of this year shared insights that 'the technology supporting the cryptocurrency was ready last year and that the digital currency could potentially be released by November 11, China's renowned shopping extravaganza, Singles Day.'
Forbes also reported that 'the world's biggest banking institution, Industrial and Commercial Bank of China, along with the Bank of China, Agricultural Bank, two leading fintech giants, Alibaba and Tencent, as well as Union Pay, a consortium of Chinese banks, would initiate the cryptocurrency transactions.'
With Singles Day behind us, the mentioned corporations have not addressed cryptocurrency matters or provided comments on the PBoC's DCEP initiatives.
All In on Blockchain
Although the Chinese government isn't releasing a digital currency just yet, it's undeniably evident that groundwork on both national and more localized blockchain ventures has commenced.
Shortly after President Xi Jinping's declaration about adopting blockchain as a 'core technology,' China's legislative body passed a cryptography law, providing clear guidelines on cryptography - the backbone of blockchain - in commercial practices.
Regarding concrete initiatives, details from the CCP's propaganda machine disclosed the debut of a blockchain tool, 'Original Intentions Onchain,' enabling party members to digitally pledge their allegiance on a blockchain ledger.
Additionally, news has surfaced of Chinese cities pouring vast resources into blockchain endeavors. Concurrently, Huawei has reported that it's collaborating with Beijing agencies to facilitate data transfer using blockchain.
There's a flurry of activity in China as companies dive into the blockchain realm. Could Huawei be on the verge of releasing its Blockchain wallet? ???? https://t.co/kUkTxoClE5
— Boxmining (@boxmining) November 10, 2019
