Is China Coming Out With New Cryptocurrency?

In an age of digitization, China announces its plans for a new “cryptocurrency.” However, is it truly cryptocurrency as we know it?

Inspired by the release of Facebook’s Libra, previous People’s Bank of China (PBOC) governor, Zhou Xiaochuan (周小川) revealed new thinking about digitizing Chinese currency. Zhou the asset-backed fashion of Libra which to him, represents the shift of cryptocurrency as a way to get rich to a means of trades in the general population.

Paper Chinese yuan (Renminbi 元)

China’s Digitization of Commerce

Chinese street performers displaying their Alipay and WeChat QR Code for tips (Credit: )

Whereas in America, it’s becoming more and more common to see customers tap their phone to pay with Apple Pay, Google Wallet, or Samsung Pay, China has been using Alipay (similar to PayPal) and WeChat Pay (similar to Venmo/Zelle). Nowadays, of Chinese people use a third-party payment provider, like WeChat or Alipay. WeChat and Alipay have a 93.3% penetration of…