In a story that seems to have gone largely unnoticed by the western press, the China Daily reported that the PBoC has successfully designed a prototype that can regulate its future supply of digital fiat currency.
In a report, ‘PBoC inches closer to digital currency’, the newspaper stated that China’s central bank ‘has completed trial runs on the algorithms needed for digital currency supply, taking it a step closer to addressing the technological challenges associated with digital currencies, according to a top official associated with the project.’
China’s has been preparing for digital currency since 2016. In June this year, the PBoC ‘finished several digital money trials involving fake transactions between it and some of the country’s commercial banks.’ Given over-invoicing of imports and the shenanigans in the shadow banking/WMP sector, we suspect that the commercial banks took to these trials like proverbial flies to feces.
The China Daily article goes on to suggest that, while there is no timetable, ‘China is likely to become the first country that would deploy a digital fiat currency.’
This post was published at Zero Hedge on Oct 16, 2017.
Follow on Twitter
Recent Comments