The central bank of China (PBoC) recently outlined its agenda on the creation of a digital currency that can be controlled by the state. In a statement presented at the conference, PBoC prioritized the innovation, research, and development of digital currency for the central bank. Represented by Deputy Governor Fan Yifei, PBoC stated that the central bank has formed a joint committee with the monetary department, and is on the fast track to realize this agenda. PBoC focuses its focus on addressing the digital currency and state reserves aspects with timely and timely reforms.
Fan Yifei added that the rapidly growing digital economy had a big impact on Yuan's circulation. Therefore, efforts to improve the development of digital currency are considered important to the central bank, even equivalent to the strengthening of gold and silver business. Fan then went on to admit that the research team is currently working hard to develop a government-controlled digital currency.
Awake From High Volatility
Not much information about the digital currency will be created by PBoC. But there is information that says that the digital currency is called Basecoin. Another digital currency that has been released and controlled by the state is Petro Venezuela, which is pegged with oil prices and supported by state oil reserves.
Basecoin will be designed so that it has quasi-stability protection, so its value can be maintained and the users do not have to worry about the extreme volatility that is common in the crypto currency market. Simply put, Basecoin is based on an algorithm that will keep the value of the coin stable. This concept is very similar to the base of Crypto Tether (USDT) currency creation. Going forward, maybe the Basecoin value will be pegged on the Consumer Price Index (CPI).