Regulatory Series On Cryptocurrencies: Chinese Native Crypto On The Cards Amid Pandemic Circumstance

Having total reported death cases across the globe exceeds due to the pandemic Covid-19, almost all markets have halted with a trauma.

As the outbreak widens, the most severe impact on commodity markets (especially, crude oil demand) will be through aggressive travel curtailments. Efforts across the globe to contain the virus have already forced airlines to cancel flights, public gatherings to be suspended, and business conferences to be postponed. Passenger traffic is also certain to decline as a standard component of the public health emergency includes work-from-home arrangements.

Fraudsters may be on their toes for such circumstances, while naive Bitcoin investors might be apprehensive during times of panic.

Ever since the sovereign nations grilling Facebook’s Libra, many central banks appear to be optimistically designing & developing the native cryptocurrencies, and Year-2020 can witness some experimentations in this perspective.

On this backdrop, the development of the PBoC’s digital Yuan appears to be indulged by the ongoing COVID-19 pandemic. On this matter, conference-call was scheduled by the officials of PBoC on April 3rd. Primarily, the developments of the digital renminbi was discussed. Huang Qifan, the vice chairman of the China International Economic Exchange Center, had announced the name of the digital currency to be launched by the People’s Bank of China, DCEP (Digital Currency Electronic Payment, their native cryptocurrency) in the recent past. Chinese relentless approach of their domestic cryptocurrency or central bank digital currency (CBDC), signifies their commitment to the cryptocurrency mechanism. 

Despite confronting challenges in the recent past owing to coronavirus outbreak where it is originated, the country’s central bank (PBoC) still prioritize the CBDC development. Recent reports indicates that they are intending to unveil their domestic CBDC in 2020.

While Bank of China also piloted Blockchain-Based bond issuance programme, while PBoC eyeing on stimulating cryptocurrency and Fintech projects upon their President’s perspectives on Blockchain technology. 

BIS (Bank of International Settlements) has given their opinion on shift in payments system is possible due to prolonged coronavirus apprehensions that could prompt and stimulate the ideas of central bank digital currencies. Contemplating all these developments, no wonder even if they come up with their own cryptocurrency.