"Bitcoin price surge may be driving up interest in China\u2019s digital yuan, central bank says"

" \n Interest in China\u2019s digital yuan project could in part be driven by the surging price of\u00a0bitcoin, China\u2019s central bank said Thursday, even as the cryptocurrency is effectively banned in the world\u2019s second-largest economy. \n \n\n \n China\u2019s digital yuan\u00a0is an example of a central bank digital currency (CBDC) which aims to replace some of the cash in circulation. \n \n\n \n The the People\u2019s Bank of China (PBOC) sees it as a way to advance cashless payments. It is effectively a digital version of fiat currency. The central bank has been working on a digital currency since 2014. \n \n\n \n Speaking to reporters, Wang Xin, PBOC research bureau director, said market interest in the digital yuan is \u201cvery strong and everyone is paying close attention.\u201d \n \n\n \n \u201cOn one hand, this is related to more and more central banks in the world participating in the development of domestic digital currencies,\u201d Wang said, according to a CNBC translation of his Mandarin comments. \n \n\n \n A number of central banks around the world \u2014 including Japan, the U.K., Sweden and Switzerland\u00a0\u2014 are\u00a0exploring issuing their own digital currencies. China is arguably the furthest ahead. \n \n\n \n \u201cOn the other hand, this (interest) may also be related to the large increase in the price of bitcoin,\u201d Wang said. \n \n\n \n The price of bitcoin has repeatedly hit record highs in the past few months. This year alone, it has more than doubled. \n \n\n \n But China\u2019s digital yuan is not like bitcoin. \n \n\n \n The latter is a so-called decentralized cryptocurrency, which means it has no central authority \u2014 such as a central bank \u2014 to control it. Bitcoin also works on a\u00a0technology called blockchain\u00a0and it\u2019s unclear at this point what the digital yuan will be based on. \n \n\n \n Chinese authorities have cracked down on bitcoin over the past few years. \n \n\n \n In 2017,\u00a0Beijing banned so-called initial coin offerings, a way to issue new digital tokens and raise money. The government has also\u00a0cracked down on businesses involved in cryptocurrency operations, such as exchanges. \n \n\n \n Last month, China\u2019s Inner Mongolia region\u00a0banned new cryptocurrency mining projects\u00a0in a push to clean up its energy consumption. \n \n\n \n More digital yuan pilots ahead \n \n\n \n So far, the PBOC has not given a timeline for the nationwide rollout of the digital yuan. But it has carried out a number of real-world pilot projects in cities around China. \n \n\n \n These often take the form of lotteries where people in those cities can apply to get a slice of a pool of digital yuan and then spend it at participating retailers. \n \n\n \n Over the Chinese Lunar New Year in February, authorities\u00a0handed out about $1.5 million\u00a0in Beijing. Other major cities\u00a0including Shenzhen\u00a0and\u00a0Chengdu\u00a0have had their own trials. \n \n\n \n Wang said the pilots and are \u201cincreasing, and also expanding in scope.\u201d He hinted at more trials to come. \n \n\n \n \u201cNext, we will push ahead with digital RMB pilots, and accumulate more experience,\u201d he said. \n "

"Bitcoin price surge may be driving up interest in China\u2019s digital yuan, central bank says"

Domestic factors driving Ghana’s interest rates, says IMF Mission ChiefAMP

IMF Mission Chief cautions Ghana on electoral fiscal slippage risks amid robust performanceAMP

90% of Nigeria’s tax revenue comes from only nine taxesAMP