China is planning to hold the first testing of own national cryptocurrency (DCEP). By the end of 2019, “digital yuan” will be tested in practice in Shenzhen and maybe Suzhou. If all goes well, DCEP will take in other cities in the near future. Testing will also participate in four of the largest Bank in the country and three Telecom companies.
The advantages of the blockchain in China
Information on the testing appeared in the local news publication, Caijing.
The first step is a rational choice of the geographical location of the script and testing services for DCEP. Only then we will gradually promote the use of digital currency.
Now the authorities are going to not only test the basic functions of “digital yuan”, but also to apply it in daily life: transport, education and healthcare.
Testing DCEP will be held in two stages. The first will begin in late 2019 and will have a relatively small scale. The second begins in 2020. If everything goes as planned by the Central Bank to plan, shortly after completion of testing, will be officially launched cryptocurrency.
Meanwhile, the Western competitors China suffer defeat after defeat in the struggle with financial regulators. The project of cryptocurrency Libra from Facebook don’t pay much in American financial institutions. In addition, the Secretary of the Treasury Steven Mnuchin believes that the issue of digital dollar in the next five years is not necessary.
Most likely, this race will win just China, because there the course of the adoption of the blockchain is approved at the state level.
Unfortunately, the Chinese cryptocurrency will not have almost anything to do with decentralization. It is assumed that developers DCEP managed to achieve a huge throughput of the blockchain through the use of centralized nodes in the network cryptocurrency. Yes, thanks to this coin in tens of thousands of times faster than Bitcoin, but only honor she is not doing.
Lack of decentralization means that each user of the cryptocurrency could lose access to the service at any time. Most likely, there will be taken into account peculiarities of behavior of the individual citizen. In tandem with bloccano the new currency of the country can turn people’s lives into a nightmare.
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