The Peoples Bank of China (PBoC) recently announced its plans of utilizing blockchain technology for developing RMBCoin, a blockchain based national c
The Peoples Bank of China (PBoC) recently announced its plans of utilizing blockchain technology for developing RMBCoin, a blockchain based national currency. By using this technology, tPBoC is allocating its capital and resources to launch digital currency which is based on the Chinese yuan, similar to Alibaba.
There are major differences between the legitimate cryptocurrencies like monero and bitcoin which are based on genuine cryptography and the new PBoCs project. The things which you should be aware of:
-> The supply of RMBCoin can be manipulated by the government.
-> The blockchain currency will remain private.
-> User’s Private keys shall be kept by the government officials.
The e-commerce giant Alibaba with the revenue of $257 billion USD is also interested in blockchain technology. Right now it is experimenting with the new blockchain technology to use it to increase its financial services.
Alipay, which is a financial company owned and operated by Alibaba has over 900 million accounts and 350 registered users all over the China. Alipay, with a market value of $60 billion, has taken over the Chinese Fintech industry and is rapidly growing the consumer of traditional financial and banking sectors with its more secure, cheaper and efficient alternatives.
Recently, the CEO of Ant Financial, Eric Jing announced that the company along with its famous application Alipay is ready for the global expansion. With the dominance of Ant over the Fintech industry with more than 70% of the market share in China and the rapidly increasing global Fintech market, Eric and his company holds a strong believe that Ant has the capacity of expanding its base from China to the Europe, USA and other regions.
RMBCoin can run in conflict with Ant Financials much stronger project of creating a blockchain based financial network which can be used by a billions of users globally as well as within China.
Ant Financial has already started to take over the financial industry because a larger section of people are shifting from the traditional forms of payments to Alipay very rapidly, which serves as a cashless alternative. Experts, local residents, and analysts including Chen, the CEO and founder of Money Bazaar, accepted in an interview that it is extremely difficult to find the people using cash or credit cards to settle any of their financial activities, right from receiving the salaries, or paying for goods and services in a local stores or just buying a cup of coffee in a cafeteria. The majority of users use applications like Alipay in their smartphones to pay for the goods.