China plans to create its own Bitcoin

Yao Qian said that it is planned to create a national cryptocurrency. Chinese Bitcoin is able to stabilize the yuan, which has been depreciating for 4 years. Own digital asset will work without speculation, markups and fiction. If China recognized the BTC as its currency, it would have terrible consequences. Yao Qian is convinced that in China, Bitcoin will not be able to become a real currency, since it does not have an internal price.

Will China have a working cryptocurrency?

The intrinsic value of Chinese Bitcoin will be provided by the state. Thus, it will be possible to create a decentralized resource that will be distinguished by stability and relevance. The digital asset is aimed at stabilizing the yuan and protecting digital coins from lawlessness on exchanges.

The main credit organization in China has established an institution that studies cryptocurrencies. Mu Changchun said that the currency has been developed for several years, so soon it will be "published."

Cryptocurrency will be popular because in China special equipment is produced for the mining of Bitcoin and other virtual material resources. In the country, devices are sold at low cost. That is why miners from China decently earn on tokens.

Mining Payback in China

BTC mining pays off in China quickly, since it will take no more than $ 3200 to start earning. Lower mining price in other countries:

• Uzbekistan;
• Ukraine;
• Belarus.

There are states in which it is very expensive to mine coins, for example, in South Korea, the price of mining reaches 26 thousand dollars. To date, China has under control about 80% of the hashrate. More than half of the mining pools in the world are owned by Chinese traders and investors. Issuing your own crypto is a matter of time, but the fact that Chinese Bitcoin will be cheap for the first time is certain. It is important for the government that the asset is stable and that the rate does not involuntarily increase or decrease.

China fights Bitcoin, but wants to launch its own cryptocurrency

The fight against cryptocurrency began in 2013. The PRC"s main bank prohibits financial institutions from conducting transactions related to a digital asset. The reason for the ban was the inability to control the token. After another 3 years, one of the political parties claims to block the national economy.

Three years ago, the authorities banned the holding of ICOs, which is why the large exchange of BTCC stopped working. Last year, they banned the use of tertiary crypto markets. It is also impossible to conduct direct transactions between the owners of coins. The Bitcoin exchanger did not sell, since there were practically no exchanges left.

The Chinese continued to mine coins and trade them. The following bans touched foreign trading sites. In 2018, there was a total cleaning of the crypto space. The president states that blockchain is an important element that is the lever of the technological revolution and innovation. The government begins to talk about creating its own token, which will be similar to Bitcoin.

Existence of the LCFHC Currency Supported by the PRC Government

A few years ago, the world learned about the new currency LCFHC. It was created by the Chinese government and stakeholders. It is not yet possible to order Chinese Bitcoin yet to be issued, but you can get acquainted with the LCFHC cryptocurrency.

It was planned that the state asset would be distributed to voluntary project participants. Each will receive 1380 tokens. In this case, 1 coin gets a participant for 1 dollar. A stable coin is not subject to speculation and other influences.

In 2017, this currency appeared in an atypical way - through network marketing. The need for currency development in China appeared when the share of international payments increased. The indicator amounted to 40% of the global volume. The country makes a huge turnover of credit operations with the military-technical cooperation. About 80% of transactions are carried out using the renminbi.

Investors do not want to invest in LCFHC so far, because the financial asset is not as popular as other large virtual coins. Many expect the release of Chinese Bitcoin, the price of which will be more or less stable and reasonable.

Now discussing issues about the cryptocurrency of the country:

• partner exchanges are being searched;
• electronic wallets are created in which it will be possible to store tokens;
• specialists are working on improving the platform.

Analysts are convinced that this is not a cryptocurrency, but a financial pyramid. The project collects confidential information of participants and works according to a modified scheme.

Why did China need its own crypto?

A little earlier, the analogue of Ethereum - the NEO asset - entered the cryptocurrency market. He established himself as a good resource that is interesting to investors. Now is the time to issue an official cryptocurrency, which the authorities will control.

Due to the unstable geopolitical situation in the world, China had to reconsider its position regarding cryptocurrencies. In June 2019, the news agency noted that crypto is a worthwhile asset that is a “safe haven” that attracts foreign capital to the state.

According to some reports, the cryptocurrency of China will operate on the principle of the El Petro token launched in Venezuela. The virtual token will not be completely confidential. The country"s central bank intends to control financial transactions. Since the beginning of 2019, the state began to replenish its precious metal reserves. This means that quotes of its own cryptocurrency will be supported by a gold and foreign exchange reserve.

Currency is unlikely to be competitive. China will use it to deter investors. Coins will use power as an argument in a dispute with the United States. Expert Timur Nigmatullin is convinced that the new crypto will operate on the principle of securities issued by the country. This is another payment item that has its own characteristics, advantages and disadvantages.