Countries are lining up to walk down the aisle with blockchain-based currencies. And the world’s second-largest economy is leading the way with the People’s Bank of China (PBoC) accelerating efforts to launch a digital currency that would allow the government to maintain control of its money supply while appealing to the pro-mobile, pro-digital, instant-delivery ethos of everyday modern apps.
China is reportedly shifting into high gear following President Xi Jinping’s recent pledge to be the world’s blockchain champion.
He is also responding to the threat of tech giants that are moving fast to offer instant, mobile and digital payment solutions as well as banking services that can outperform traditional financial institutions.
Although government-backed digital currencies are not decentralized cryptocurrencies, Bitcoin bull Mike Novogratz, founder and CEO of Galaxy Digital, believes China’s latest endorsement of the very technology that underpins Bitcoin and millions of crypto transactions, triggered BTC’s recent bounce from the $7,500 level to over $10,000. With Bitcoin now trading around $9,257 at time of publishing, according to CoinMarketCap, and with blockchain gaining strong support from China, the computer science behind cryptocurrencies is becoming harder and harder to dismiss as a fad.
Speaking in New York on Tuesday at the Reuters Global Investment Outlook 2020 Summit, Novogratz said that President Xi’s endorsement of blockchain technology “just credentialized crypto and blockchain,” reports Cointelegraph.
Countries are on the move.
On Wednesday, Ukraine’s Ministry of Digital Transformation signed a memorandum of understanding (MoU) with leading global crypto exchange Binance to offer guidance on regulations and to introduce cryptocurrencies into the marketplace.
According to the agreement,
“Binance will also help develop transparent and effective mechanisms for the transfer of rights to any virtual assets or currencies using blockchain technology as well as beneficial conditions for investments and business in Ukraine.