Media agency Bloomberg has announced that the People’s Bank of China (PBOC) has adopted a digital technology approach which entails the introduction of its own version of cryptocurrency.
Reportedly, the project is in its test phase but as of now, no official date for the launch of the virtual currency has been confirmed by the financial institution.
If the idea comes to fruition, PBOC will become one of the first central banks to issue digital money.
As a matter of fact, decentralization is what makes Bitcoin attractive. Hence, it remains to be seen whether PBOC’s cryptocurrency will appeal to the markets.
In addition, if the bank’s version becomes popular, that would create a very competitive environment given the two major online payment systems in the country, Alibaba’s Alipay and Tencent’s WeChat.