Blockchain Expert Says China’s National Currency Could Become a Cryptocurrency

In an interview with Bloomberg on April 17, 2019, Donald Tapscott, executive chairman of the Blockchain Research Institute, said that China’s official currency, the renminbi (RMB) will soon become a cryptocurrency.

Will China Digitize its National Currency? Blockchain Expert Says Yes

Cryptocurrencies and China have had anything but a stable relationship.

The Asian powerhouse currently has a blanket ban on initial coin offerings (ICOs), cryptocurrency exchanges, and is now considering banning the mining business too. This is interesting because a ban on cryptocurrency mining could have a catastrophic impact on Chinese bitcoin mining behemoth Bitmain, which is already troubled with financial problems.

However, according to Donald Tapscott, executive chairman of the Blockchain Research Institute, despite its anti-crypto outlook, China could still go the digital currency route.

Speaking to Bloomberg, Tapscott said that he recently met the vice-chairman of the Communist Party of China, who told him that President Xi Jinping believes that blockchain technology will play a crucial role in China’s future.

Tapscott touched on the reports of China banning cryptocurrency mining altogether. He opined:

“It’s not really necessary to do that because in 20 years we are not going to be using bitcoin in China. Chinese people will use the RMB, only the RMB will become a cryptocurrency. The central bank of China will turn it into a digital currency.”

Regarding decentralized exchanges’ success, Tapscott showed some optimism saying that they could still operate in China even though the government has traditionally shown a strict stance towards digital currencies.

Can Central Bank Digital Currencies Become the Norm?

The idea of CBDCs – short for central bank digital currencies – is a fascinating one. While they give a digital aspect to money to ensure speed and mobility, they do, however, take away the decentralized grassroots of cryptocurrencies which ensure that no single entity has worrisome levels of authority. This narrative has seemingly created a rift between the traditional crypto evangelists, and government officials who back the idea of CBDCs.

CBDC, while still a relatively new player on the block, has amassed some influential advocates.

BTCManager reported on November 15, 2018, how the International Monetary Fund’s (IMF) Managing Director Christine Lagarde urged Central Banks all around the world to consider issuing digital currencies.

In the same vein, acclaimed economist Dr. Nouriel Roubini opined last year that CBDCs could potentially destroy cryptocurrencies and blockchain technology in the near future.