The Chinese government is considering launching a digital asset exchange in Beijing. The exchange will also encourage the usage of the digital yuan as part of the State Council’s strategy to bolster financial services in the capital.
Recent efforts for the establishment of the central bank digital currency (CBDC) have been fast-tracked.
For example, the government has demanded faster trials and has pushed institutional banks to work with businesses to develop the necessary infrastructure.
These are the latest steps in China’s efforts to become the world’s leading blockchain power over the next five years by effectively nationalizing the industry by outlawing private cryptocurrencies and promoting the digital yuan.
China’s Ministry of Industry and Information Technology and the Office of the Central Cyberspace Affairs Commission jointly released blockchain development guidelines earlier this year, with the goal of making it the world’s most sophisticated by integrating it into the Chinese economy and society.
This puts China’s efforts to outlaw cryptocurrency trade and mining over the last year in context, despite the country having the greatest hash rate in the world.
PBOC issued a new statement
The People’s Bank of China (PBOC) issued a new statement on cryptocurrencies last month, effectively prohibiting any cryptocurrency-related company from operating in the mainland.
It subsequently placed crypto mining companies on a “negative list,” prohibiting any foreign investment in them.
Cryptocurrency mining has also been placed on China’s National Development and Reform Commission’s (NDCR) blacklist.
Since 2014, China has been working on developing a virtual version of its legal tender. Last year, several trials were conducted in key places to stimulate the adoption of the digital yuan by consumers and merchants.
Despite negative initial feedback, officials have persisted, and a wider rollout is likely for the Winter Olympics in Beijing next year.