Venezuela was the first country to launch a cryptocurrency called the Petro. It was an attempt to side-step international sanctions and boosts its crippling economy.
President Nicolas Maduro saw cryptocurrency as a way to disrupt the status quo of the international monetary system and it will not be the last country to do so. China is pursuing its own cryptocurrency in an attempt to be the primary currency of the world.
You constantly hear news stories of countries hoarding or stockpiling the United States Dollar (“USD”). The USD is the reserve currency of the world. This simply means that in times of economic struggles people trust the USD to remain at the same value. A dollar today equaled a dollar during the recession. And anyone in the world can use it accordingly.
However, China wants to disrupt the USD’s position at the top of the pyramid. China is in the process of creating its own cryptocurrency, intending to be the primary currency for the world.
A national cryptocurrency
The Chinese government is in the process of creating its own cryptocurrency. The People’s Bank of China (“PBoC”), which dictates monetary policy regarding the Chinese Yuan, discussed the progress of developing a national cryptocurrency. The purpose is to provide long-term stability and protection for the Yuan. The PBoC will have total control over the cryptocurrency. It will provide a tremendous advantage for law enforcement as well.
China also currently ranks cryptocurrencies/cryptoassets. It is the only country to do so thus far. The list is supposed to provide guidance to investors on the best blockchain projects. The ranking lists the “top” 30 blockchain/cryptocurrency projects to inform consumers about the best investments and protect against scam initial coin offerings. However, the criteria for rankings are not transparent. (The latest rankings listed EOS as number 1 despite the current issues within the community.) So it is inevitable that the Chinese government will use the list to include its national cryptocurrency.