China is poised to join the ranks of countries with their
own sovereign-backed digital currency platforms, with this new
medium expected to be leveraged to combat money laundering and
tax transparency issues.
The People’s Bank of China (PBOC) successfully
completed a test application of a blockchain-supported digital
currency developed on transactions and settlements of bank
acceptance bills on December 15 2016. The central bank has also
announced plans to launch a digital currency research institute
to develop big data systems, cryptography and blockchain
"A centrally-managed digital
currency is a great medium to address money laundering
because there is real-time name and date on all
transactions taking place"
However, the PBOC’s crackdown on tax evasion
and money laundering are the likeliest motivations for the
central bank’s digital currency initiative.
"A centrally-managed digital currency is a great medium to
address those issues because there will be...