The People’s Republic of China is looking to enter the crypto world and with its own brand. China is looking forward to launching a stablecoin owned by the Central Bank of China. This would be the first case of a government of a nation asserting its presence in the crypto world. While many big tech companies and banks have already been on the Crypto trend, it has taken a while for governments of countries to get involved in Crypto. Many thought Russia or one of the Scandinavian countries would be the first one with official crypto, but it is China who will lead in this frontier.
Why China and How
Everybody in the crypto world is shocked by the fact that a conservative country has decided to enter the Crypto World. Before this, most Crypto Pundits predicted that would be Russia that would get into the Crypto space first. This was because the major involvement of Russian Oligarchs in the Crypto Community and the link of the President of Russia, Vladimir Putin with the creator of Ethereum, Vitalik Buterin.
The country of China before this announcement, has kept its distance from cryptocurrency. The reasons for this has been obvious as the free and unrestricted world of Crypto wouldn’t make the Chinese government happy as it allows freedom for browsing and they would have limited control over it. As infamous it is, China has always made sure to restrict free access to the internet to the people of China as it would mess with their “values”. For this, they have even created every version of popular software that are available online.
However, it isn’t entirely out of the blue that the Chinese Government has taken such a decision. The Central Bank of China has mentioned about Bitcoin and other crypto back in 2016 when it wasn’t even that famous. The stablecoin made by the Chinese Government is centralized, so it is already made sure that full control has been with the Government from the start.
While some think China stepping in would promote conservatism in the market, but let me remind you there have already been many centralized currencies that have existed before and have their life cycles haven’t promoted this idea; others think that it would promote other countries to get into Crypto.