It cannot be a mere coincidence that the crypto ban came when the Chinese government rolled out its sovereign digital currency, Digital Yuan.
These days, China always seems to be in the headlines. It is mainly due to its regulations and crackdown against all the private cryptocurrencies or related activities. However, this doesn’t mean that China has an issue with the “crypto” itself; they just want the power!
The latest regulations aimed to eliminate the competition for their new digital currency, Digital Yuan. In 2014, China’s government envisioned this currency, and since then, it has distributed around $30 million. Following the past few months, the People’s Bank of China is launching trial projects in different cities for implementing a digital yuan payments system.
It is quite clear that China’s economy is eyeing the central bank digital currency. Other countries are exploring the same idea as well. Approximately five nations of the Caribbean have already implemented a digital currency. Talking about the European countries, they are also building a central bank digital currency called D-Euro. Their aim is to complement the existing monetary system and not replace fiat money.
Looking at the current scenario, it won’t be long when more countries and nations join the race to develop their central digital currency. This will defy the whole purpose behind the cryptocurrencies being decentralized.