Digital Currencies News and the China Central Bank Governor
Digital Currencies – Subject of PBOC Governor Talk
Digital Currencies is one of the hottest news in the world today. Banks and government ignore it once and laugh at it but they can laugh any more. This is especially when people starts turning into it whenever crisis arise just like what happened in China before. People in China don’t only buy gold during crisis but they also start buying digital currencies and there is news that even their banks started buying the said virtual currency for security. With this regard, government and banks started studying digital currencies and recently the head of People’s Bank of China speaks about his opinion on digital currencies.
Digital Currencies – What China Central Bank Chief Tells about it?
Governor Zhou Xiaochuan, head of the China Central Bank speaks about digital currencies. The governor didn’t go out in the media without knowledge at hand. Since PBOC has been studying the digital currency, the governor shows a huge amount of information about it. He got something to say and it plays around centralized digital yuan and capital outflow.
The PBOC Governors said that they had been studying digital currencies and as we studied the history, our currency evolves side by side with the advancement of technology and economic development activities. In behalf of the central bank, he speaks that a digital currency protects people’s privacy but it should also be designed to secured people and it should be designed follow social order.
He states that there should be documents readily available for investigation just in case there something illegal acts happen. Should there is any criminal activities happened, there is an instrument to look at and help you deal with the incident. Digital Currencies need to be balance. It should balance protecting the privacy of the people and protecting people from illegal acts.
Since Digital Currency is necessary in evolution of money, Mr. Xiaochuan announced that they will release their own digital currency. This digital currency will be based on the Central Bank principle. They will design their digital currency securing the two fundamentals of privacy are protected.
The Governor believes that central bank can offer more security to the people. He doesn’t have any strategic plan as yet but they will copy the privacy principle of virtual currencies but they will add anti-forgery. The only thing that they can’t do is decentralization which is one of the main reasons why digital currency was invented. The governor will do what he could together with the central bank to bring back the control of any currencies to the bank and government.
Xiaochuan didn’t give any specific time as to when virtual currencies will totally replace the paper money. China as the world’s most populated country couldn’t make the deployment of digital currencies faster enough to enable to replace the current currency. He said that other small country can replace their currency in just few months but it will take ten years before it can finally happen to China. For the meantime, they can distribute digital currency while the old version of money still exists. They can use both currencies until they can replace the paper money totally with electronic currencies and digital currencies