BEIJING: As Facebook readies to launch its answer to bitcoin, China is set to introduce its own digital currency – one that could allow the government and the central bank to see what people spend their money on, analysts said.
Far from the libertarian ideals of cryptocurrencies, whose anonymity allows users to buy and sell without leaving a digital trail, China’s mooted e-cash system will be tightly regulated, experts say, and run by the People’s Bank of China, the central bank. It “would give the PBoC greater insight into transactions throughout the country”, analysts at Beijing-based research firm Trivium China said.
In September, central bank governor Yi Gang said China’s new currency may be associated with existing electronic payment systems, such as WeChat and AliPay phone apps, which are widespread and allow yuan transactions via bank accounts. While he gave no timetable, Chinese media are putting their money on a November 11 launch to coincide with “Singles Day” – a massive, annual online sales event. “We will adhere to centralised management,” he added.
In a country where social credit systems and facial recognition cameras are becoming widespread, a new Chinese cryptocurrency could allow the government to “more closely monitor the actions of its population,” said Stanislas Pogorzelski, editor-in-chief of the specialist site Cryptonaute.fr.
Far from the libertarian ideals of cryptocurrencies, whose anonymity allows users to buy and sell without leaving a digital trail, China’s mooted e-cash system will be tightly regulated, experts say, and run by the People’s Bank of China, the central bank. It “would give the PBoC greater insight into transactions throughout the country”, analysts at Beijing-based research firm Trivium China said.
In September, central bank governor Yi Gang said China’s new currency may be associated with existing electronic payment systems, such as WeChat and AliPay phone apps, which are widespread and allow yuan transactions via bank accounts. While he gave no timetable, Chinese media are putting their money on a November 11 launch to coincide with “Singles Day” – a massive, annual online sales event. “We will adhere to centralised management,” he added.
In a country where social credit systems and facial recognition cameras are becoming widespread, a new Chinese cryptocurrency could allow the government to “more closely monitor the actions of its population,” said Stanislas Pogorzelski, editor-in-chief of the specialist site Cryptonaute.fr.