According to some crypto-experts, China is not as averse to cryptocurrency as it tries to demonstrate. Rather, many believe that the Chinese government has been considering launching a state-backed version of its own digital currency. If that does happen, can Bitcoin be affected in the coming days?
There have been speculations for some time now that China is not uninterested in digital currencies. However, it almost seemed like a certainty when IG Group, an online trading provider, mentioned that China is all set to launch a national cryptocurrency.
The provider is headquartered in the United Kingdom. It was quick to acknowledge though that China has not made any formal announcement on the launch date or the name of the cryptocurrency yet. However, the new currency could be launched side by side with the Yuan, which is the country’s primary currency.
The key aim could be to cater to the millions of Chinese residents who do not enjoy access to the nation’s standard banking services. It is interesting to note that despite the ban on cryptocurrency; around three million people in the country still own their digital assets.
Incidentally, the People’s Republic of China boasts a population over one billion people. Plus, the country’s economy is in a pretty good shape at present. Bitcoin News reported that prior to the cryptocurrency ban, the country dominated in the global trading market for digital currencies.
Fate Of Bitcoin
It is highly unlikely that any kind of state-backed cryptocurrency can wipe out Bitcoin or other popular digital currencies completely. However, a few small crypto players may experience a turbulent time because of the new currency.
Since the Chinese government has already banned foreign cryptocurrencies, it may eventually compel the miners to focus only on the national cryptocurrency. The action may also have a rippling effect on the global mining communities.
There is also a likelihood of Bitcoin’s value getting hit and the currency becoming less popular than before. An endorsement by the state may see the Chinese cryptocurrency gaining worldwide popularity in the future.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]