Li Lihui, an expert from the research group blockchaina in the Chinese National Internet Finance Association (NIFA), says it is about to launch the digital currency of the central bank.
Lihui: digital currencies have a future
During a live broadcast by People’s Daily, and regarding the issue of the new Chinese yuan and its impact on the country’s cash flow and monetary policy, the former Governor of the Bank of China commented on the very idea of digitized currencies.
Lihui also expects blockchain-based digital assets to thrive, but their future will depend on breaking into the financial world on a large scale. He believes that the key obstacle today is the volatility of cryptocurrency rates. If this is resolved, blockchain coins will become part of the mainstream.
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Last year, Lihui noticed that China, the world’s second largest economy, has so far been too dependent on foreign companies that deal with blockchain technology, referring to Chinese Quorum-based initiatives, the solution Ethereum for public enterprises, and Hyperledger, founded by the Linux Foundation with the support of IBM.
He called for a policy change that would provide preferential treatment, including in terms of taxes, R&D teams and companies that are building digital technology infrastructure to support the development of a new type of economy.
The president supports blockchain
In China, President Xi Jinping himself is pushing for China to become a global leader on the blockchain market.
In response, the Chinese Intellectual Property Administration recently noted an increase in the number of patent applications related to the block chain. In total, the institution granted as many as 2,191 patents for blockchain in 2017-2019.
” The current closed test of the digital yuan will not affect the commercial operations of listed institutions, nor will it affect the issuing and currency circulation system, financial market and social economy outside the test environment “
– recently explained a representative of the central bank of China, talking about the digitized yuan. If everything goes according to plan, the currency will appear on the market in 2020, and this means that the Middle Kingdom will be the first power with this type of payment unit.
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