Chinese Central Bank Consider Issuing Own Digital Coin

CBDC (central bank's digital currency) can be build without blockchain
26 January 2018   556

The Central Bank of China is considering issuing its own digital currency, maybe even not blockchain based. This is reported by CoinDesk.

Vice chairman of the People's Bank of China, Fan Yifei, spoke on the early plans of the department for the development of the digital currency.

He said that their currency would differ significantly from those that are decentralized, while centralization and control over emissions will remain the main priorities.

CBDC (central bank's digital currency) will still be the central bank's liability to the public. The nature of this liability will not change just because of the physical form of cash going digitalized. Therefore, we must ensure the central role of PBoC in issuing CBDC. A CBDC will also help curb the public's demand for private cryptocurrencies, which will strengthen the role of our sovereign currency.

Fan Yifei

Vice chairman, People's Bank of China

He also noted that the digital currency will not necessarily be operation on blockchain as most cryptocurrencies, which, for the most part, makes them anonymous. The central bank will be able to follow the transactions made with the help of the state digital currency, which will not allow it to be used for money laundering and other illegal activities.

In addition, the central bank will be cautious about the implementation of smart contracts that can automate processes using its digital currency. Since this currency will in fact become the equivalent of the yuan in digital form, then it will be subject to the same requirements that govern the circulation of the country's currency.

At the moment, according to the Chinese laws, the yuan can be used only for setting prices, circulation, calculations and storage. The same functions will be vested in the digital currency. Fan explained that the use of smart contracts can allow, for example, to automate the process of collecting taxes and raising funds, but this will be considered a violation of existing laws.

Bakkt to be Launched in December

It is also reported that Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure
19 October 2018   95

The expected launch of the Bakkt will take place on December 12 of this year. It is reported by The Block, citing informed sources.

Also, the material states that the investment bank Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure. At the same time, the bank is considering the possibility of trading futures on a new platform.

In a recent Fortune interview with Bakkt, Kelly Lofler said that the cryptocurrency market is on the verge of a revolution comparable in size to the one that occurred on the energy market in the early 2000s.

Greater institutional participation in the digital asset markets requires secure and regulated custody solutions. We are impressed by BitGo’s product, unique services, and the management team. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.

Rana Yared

Managing director, Goldman Sachs’ Principal Strategic Investments group

Bakkt is a cryptocurrency unit of the Intercontinental Exchange (ICE), which is the operator of the New York Stock Exchange. Giants such as Microsoft and Starbucks are taking part in creating of the new project, which is positioned as an “ecosystem for digital assets”.

The new platform will offer deliverable bitcoin futures to the market (unlike the settlement contracts for CBOE and CME, these are based on the underlying asset). The platform will support multiple fiat currencies.