The People’s Bank of China( China’s central bank ) has developed a prototype of a cryptocurrency that it could get in circulation in the future. It would run alongside the China’s primary currency the yuan. China is testing this on many field and making mock transactions using this cryptocurrency with some commercial Chinese banks.
The benefits of developing a digital currency are ,first – it would decrease the cost of transactions, and therefore make financial services more accessible, which would be a big help to the millions of people in the country who are unconnected to conventional banks. Second, as it would be supported by blockchain, it has the potential to decrease the rates of fraud and counterfeiting, which would be of service to the government’s attempts to reduce corruption — a key concern. Third, it would make the currency easier to obtain, which would increase the rate of international transactions, allowing for more trades and faster economic growth.
What is a cryptocurrency ?
A cryptocurrency is a digital currency ,Imaging it like money(cash) but in digital form that can be used for transaction and transfer to other person by peer to peer network. Now there are lot of cryptocurrency like Bitcoins, litecoin etc
But the most popular is Bitcoins, The Bitcoins were invented by Satoshi Nakamoto(the unknown investor of Bitcoin) they were the side product of another invention. In his announcement of Bitcoin in late 2008, Satoshi said he developed “A Peer-to-Peer Electronic Cash System.“ After seeing all the centralized attempts fail, Satoshi tried to build a digital cash system without a central entity. Like a Peer-to-Peer network for file sharing.This decision became the birth of cryptocurrency.
Bitcoin became the first decentralized cryptocurrency in 2009. Since then, numerous cryptocurrencies have been created.
Since Bitcoin’s beginnings in 2009 the value of it was around 0.0007 USD. The digital currency, and the very idea of cryptocurrencies in fact, has grown monumentally. The total market cap of cryptocurrencies on April 1st of this year was over $25 Billion. A single Bitcoin is now worth more than $2,500. Now many national economies, as China’s plan shows, are considering the idea of developing their own variant.