ChinaCoin is the first state-backed cryptocurrency, manufactured and controlled by their government. Here we will explore this cryptocurrency starting from its history during China’s Central Bank governor duo Wang Qishan and Zhou Xiaochuan first backing it back in 2007. It is said that Satoshi Nakamoto who invented Bitcoin, saw democracy as an integral part of any healthy economic system. How does this all fit together with a supposedly totalitarian country choosing to manufacture a proprietary currency?
If one looks at two of the most prosperous countries in the world when it comes to the power to create wealth—the USA and Japan—they both have a long, rich history of intellectual property theft and dirty deals among powerful players who are so friendly they should probably be paying one another for speaking gigs.
We need not go
ChinaCoin is the first blockchain project in China which achieve state support and was endorsed by all three branches of the country’s government—President, Vice President and The Central Bank Governor. China, because of its massive internet population, has been an attractive investment destination for emerging cryptocurrencies. With no regulations from the Chinese government in cryptocurrency trading, many Chinese businesses are shifting part of their fundraising to ICOs – Initial Coin Offerings to circumvent government scrutiny.
What’s In It For Me?
Many startups in China have raised billions through ICOs without regulations from the Chinese government. That doesn’t mean that new international investors need be skeptical about these companies investments, as China has rich experiences drawing international investment and with global vination bonds many countries have experienced great development with little downside risk from foreign interests
The Story of State-backed Cryptocurrency ChinaCoin
Welcome to the world of Bitcoin 2.0 – the world in which governments issue and control a decentralized cryptocurrency to try and create some form of stability for their country’s economy. China seems desperate for this. With sanctions imposed, citizens are looking for alternatives. In 2017 it announced “a slate of sweeping economic reforms that showcased Beijing’s new assertive foreign policy stance and its intent to reform key planks of China’s economy” (economist.com) The restoration of control through a decentralized currency, an asset separate from the typically comparatively volatile stocks and bonds fostered by Western nations, is all part to provide some stability when their government isn’t providing any external stability themselves on their own terms.
In theory,
ChinaCoin is primarily modelled on a free-margin trading system with decentralized asset equity management, built into what will be the world’s first cryptocurrency ecosystem with a multi-opinion consensus mechanism based on Value Chain Matrix Theory, cyclical distribution profit model, blockchain technology application (application), and four intelligent opinion aggregation systems. The basic idea behind Chinacoin is that, in recent years cryptocurrency industry has other bright spots for capital generation emerging all over the world: Russia’s Black triangle currency and North Korea’s cooperative currency Kangfu had been publishing photos attributed to Kim Jong Un inspecting an assembling plant for making different types of money.
ChinaCoin is a state-backed cryptocurrency that is backed by RMB as a legal tender.
As cryptocurrencies or digital currencies are speculating against REIn, people are increasingly seeing these assets as a safe haven for investment. The government has realised this and this has resulted in the establishment of ChinaCoin – the state-backed cryptocurrency of China. It is pegged on to Chinese Yuan (CNY) when it comes to values and can be exchanged through banks in roubles and dollars should you have any trouble with converting the digital currency into fiat money. What sets ChinaCoin apart from other cryptocurrencies? It is backed by policies that seek to regulate international transactions, while ensuring better management of local capital. China also has higher credit ratings than many other countries in the world, making it more appealing aside from its
ChinaCoin is China’s first digital currency, which aims to more efficiently process retail payments and unleash digital bank branches in villages nationwide. As China’s central bank-backed blockchain-based currency, it can be freely converted at two bank counter or post office branches or an interchange until it is taken out of circulation at certain time. ChinaCoin is a cryptocurrency that’s worth at least 26 million U.S. dollars on the market right now. The currency was created in response to the recent wave of crackdowns on Bitcoin and other cryptocurrencies in China, which have been outlawed as a so called “bubble” threat by Beijing regulators.
The underlying principle of ChinaCoin is to offer a practical example of how currency might work in an environment where blockchain technology is regulated and more heavily monitored than it currently is elsewhere in the world––a plan Chinese authorities insist will eventually make them safer from hackers, thieves, and other dubious monetary schemes.
