Posted 1 year ago | by Ben Armstrong
China to Launch State-Backed Crypto Trials in Two Cities
According to reports from Chinese state media, the nation will begin trials of a digital currency in two cities soon. The urban hubs of Shenzhen and Suzhou were chosen by the People's Bank of China (PBoC) as the first places to demo the new digital currency.
China is moving quickly to catch up in the world of blockchain and cryptos, but the new program from the PBoC isn't exactly like Bitcoin. In fact, the only thing that links the new PBoC program and cryptos is blockchain technology.
The new token system will be used in areas like transportation and medical care, and there are unlikely to be many small scale uses of the system, at least at first. Chinese authorities are planning to phase in the trials over the course of 2020, and there is no work if they will lead to a permanent implementation of the system.
Big Gaps in Reality are Emerging
Blockchain has only been around for a decade, and already we are seeing some pretty major issues emerge in the development space. Nations like China are co-opting the technology to fit their draconian social system at an official level, while illegal Bitcoin mining farms thrive in China.
It is easy to overlook how fractured this makes the Chinese state appear, but the dichotomy between the State's publicly espoused fiction and the economic reality of China is very easy to see in the blockchain space.
China would very clearly like for both domestic and international audiences to believe that the Mother Ship is in firm control of the nation.
When it comes to any form of reliable economic indicator, it is obvious that Beijing is something along the lines of the Simpson's Maggie, who turns the wheel on a little toy, while superior forces actually control the direction of the car (see link here-00:50).
Blockchain Will Rock You
While Beijing is continuing to engage in a pleasant fiction, the USA is lagging in one of the most innovative industries there is on earth. Facebook's Libra was not a great idea, but the official outcry over the project was downright scary.
Libra was designed to create a monopoly money system that Zuckerberg et al. controlled, and there was a pretty big push-back from just about anyone who could partially wrap their mind around the idea.
The message on cryptos from the US power structure is mixed, but it appears that the powers that be don't want one of their pet intelligence gathering projects (Facebook) moving into the realm of money, where there are some long-established players who hate competition (the private, for-profit central banks).
It should come as news to no one that decentralized blockchain platforms could care less about what the establishment in any nation wants, as it has grown up in both ignominy and infamy. The hate that Bitcoin took in 2017 as it scaled new heights did nothing to impact the market, and now the banks that lashed out against cryptos are learning how to trade them for clients.