The head of a government-funded blockchain research has said that China is working on a national cryptocurrency, according to Coindesk.
The chief of the China Banknote Blockchain Research Center, Zhang Yifeng, said that “the research and development of a digital fiat currency is on-going in China” and that roadmap and launch date hasn’t been decided.
The China Banknote Blockchain Research Center is a government-funded organization, which, being a subsidiary of the China Banknote Credit Card Industry Development, is also a subordinate of the Chinese Central Bank (People’s Bank of China).
On March 10, the Governor of the People’s Bank of China told journalists that “the development of digital currencies is inevitable.”
According to Zhang, a Central Bank issued digital currency will not replace the traditional fiat currency immediately, but would rather be used in parallel with the existing system.
“Value as a payments tool is central to a state digital currency. Bitcoin and Ethereum are not entitled to be called digital currency,” he said. “Given their role in storing value has largely overtaken their payments role.”