China will soon launch its own digital currency

The People's Bank of China announced its readiness to launch a national digital currency. Work on it was carried out

five years, compared to traditional cryptocurrencies, it has a more complex structure.

Why do you need it

The system will be based on a two-leveldivision, with the People's Bank of China on top and other commercial banks on the bottom. Blockchain will not be used in it, since it has too low bandwidth for retail trade. Thus, the state plans to stabilize the economy and make China more independent from foreign technologies. Additionally, a national cryptocurrency would fix the problem of speculation, where people sell off regular currency to buy digital currency.

What prevents

It was noted that for the full launch of the newthe system will need to resolve several issues: increase the efficiency of traditional financial structures, as well as draw up principles for regulating national cryptocurrency in other countries. Until then, the release date of “Chinesecoin” remains unknown.