Ten years ago, release of Bitcoin was a generally small event with huge repercussions, a number of well-renowned companies in the world and nations getting into digital forms of money, i.e cryptocurrencies.
Over the most recent decade, the price of bitcoin has soared, moving to highs of nearly $20,000 per bitcoin in late 2017 preceding falling back pointedly. But it was only after the gigantic bull run that grabbed the eye of numerous banks, retailers and tech organizations.
At the central bank of China, a senior official (the governor of the People's Bank of China, PBOC) stated that they are "almost ready" to bring the bitcoin idea, digital currencies and crypto for the Chinese people. According to him, their own digital currency could rival Facebook's Libra and bitcoin as well. In an event held by China Finance 40 Forum, Mu Changchun announced this information. But an exact launch date is still not disclosed. This news was first reported by a financial newswire, Bloomberg.
Mu Changchun also added that Chinese digital currency would not solely depend on blockchain technology like other cryptocurrencies including bitcoin do, because it could not handle the vast transaction volumes of China. For the last five years, PBOC was working with other major central banks like Sweden's Riksbank to create a bitcoin rival. Now this digital currency will replace physical cash. He also added that this Chinese digital currency will be issued by both financial institutions and the central bank as well.
The Bank of China, which is state-owned and the fourth biggest bank in the world by assets uploaded a pro-bitcoin infographic on official website last month. The video was explaining the bitcoin history and working of cryptocurrencies. Video was uploaded after its legally recognition by Chinese court which found cryptocurrency should be considered as digital property.
Samson Mow, Bitcoin's chief strategy officer and Blockstream company based on blockchain technology reported about "The Bank of China posted up an article about bitcoin" via Twitter with infographic screenshot. He also described it as 'bullish' and added the working of bitcoin, reason of rising prices as well as its value.
In 2019, bitcoin price has experienced a strong rise and cryptocurrency rumours still swirled around some world's renowned technology companies. As Facebook is planning for digital currency, Libra, some social media giants like Twitter, Apple etc. are also looking for bitcoin and crypto once it gets the financial regulator onboard.
If China releases its own cryptocurrency then there will be a boost to cryptocurrency and bitcoin prices. Moreover, Walmart- the U.S retail giant is also developing its own cryptocurrency to compete with Facebook's Libra project. But still many believe that blockchain and bitcoin is still so far this year.
Executive director at BC technology, Dave Chapman told Bloomberg that like Walmart's digital currency could disrupt payments and finance.
Chinese PBOC stated that Libra and other private digital currencies would limit their takeup in the nation.
China had a link with bitcoin and crypto, with Beijing getting serious about digital currency exchanging, i.e. cryptocurrency by closing down bitcoin trades and forbidding initial coin contributions as a path for organizations to raise assets in 2017.
Nowadays, Cryptocurrency and bitcoin mining is still very popular in the nation as China is home to more than 50% bitcoin mining farms in the world.