Central Bank of China to Issue a Digital Currency in the Next 2-3 Months
China has built a framework called the Digital Currency Electronic Payment (DCEP) which would enable its national bank (PBOC) to issue a cryptocurrency commercial banks and payment networks like Alipay and WeChat Pay.
That is according to Jack Lee, Co-Founder & Executive Director of Chained Finance Ltd. (an automatic supply chain finance company based on Blockchain technology) who told CNBC:
“So, they already have all the system and the network ready. I think you will see it very soon, in the next maybe two to three months.”
He pointed out that the digital currency launch is not meant to totally replace the actual currency but will start as an experiment and will expand after getting tested.
HCM Capital which is backed by Foxconn Technology Group, one of the top 10 technology companies in the world, has invested in many blockchain start-ups.
According to Daniela Stoffel, State Secretary for International Finance at the Federal Department of Finance in Switzerland, the eventual launch of China’s digital currency may force authorities around the globe to decide how they want to regulate this new technology.
Stoffel told CNBC:
“If the governments now realize that this is now really actually happening, and the question and challenges that are implied in an e-currency are now real, I hope this will lend further momentum to decisions on a global basis.”
Xi Jinping, president of China has recently called to seize the opportunity of blockchain technology that aims for China to become a global leader in blockchain development. China needs to make “greater effort” to develop and apply bitcoin dice blockchain technologies and gain an “edge over other major countries,” he said.CME with new attractions for investorsAt the end of October this year the company has already published option details. On this occasion, CME stated that each contract will be based on one bitcoin futures contract consisting of five bitcoins. Their prices will be given in US dollars.
In a new announcement, Tim McCourt, head of global stock index and alternative investment products, said:
“Since the launch of our Bitcoin futures nearly two years ago, clients have expressed a growing interest in options as another way to hedge and trade in these markets. We have worked closely with clients and the industry to establish a robust and increasingly liquid underlying futures market here at CME Group, and we believe Bitcoin options will now offer our customers greater precision and flexibility to manage their risk”.
By presenting some data on the performance of their Bitcoin futures contracts, which have been registered so far, CME Group has stated that it has currently noticed an average transaction volume of over 6,500 contracts in 2019 in this market, which corresponds to about 32,500 Bitcoins. Currently, over 3,500 individual accounts for product trading are registered on the platform, and almost half of the turnover comes from outside the USA.
A chance for Bitcoin?
From time to time in the debate in the cryptocurrency environment, the topic of how the platforms like CME Group or Bakkt will affect the digital currency market returns. The very start of the latter turned out to be a huge disappointment for the market. To such an extent that the subsequent decline in BTC was – in some people’s opinion – caused by Bakkt’s weak debut. Still, many analysts believe that the emergence of such instruments around Bitcoin will, however, lead to an increase in its exchange rate.