The Central Bank of China has released information that China will most likely release “digital currency” soon. They are considering using this digital currency instead of paper because it costs less than printing, promotes trade and could minimize the likelihood of tax evasion and money laundering. The concept was created in 2014 by the People's Bank of China (PBOC) and they investigated its possible use by observing and testing how it would work locally and globally. Although the central bank is keen to establish this currency, it may be difficult to convince Chinese citizens to use it. They are usually conservative and it would be a big change to move all their money into a brand new immaterial economic system. This digital currency idea is partly a response to and idea taken from Bitcoin which is still a permitted currency in China. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original EssayRecently, there have been new updates surrounding the prospect of digital currency provided by the Chinese government being legitimized. In mid-February, the PBOC revealed that it will definitely implement a cryptocurrency created by itself. They will make sure to encrypt your money to regulate how the money is transferred and how much it is worth. They propose that the new cryptocurrency will be easier and more convenient to use, will improve the PBOC's ability to control the circulation of money and the money supply. In an interview with Governor Zhou it is currently inefficient in terms of the resources needed to make it work properly. Additionally, the new currency will improve privacy on things like Bitcoin. Bitcoin transactions are visible within a blockchain and addresses are blocked quite well through a complex system, which however it has not proven to be the safest. They plan to accomplish the creation of this cryptocurrency by working with people in the financial and tech industry to make sure they can get out of it quickly and make sure there are few to no bugs and that they are squashed quickly if they occur. One of the main concerns with this new currency, however, is that there could be major issues regarding the current digital currency that is raining down, which is Bitcoin. Up to this point, China has taken a very soft approach towards Bitcoin, not applying many regulations to it. They let them operate freely in China and now they represent a very large part of the Chinese market. Bitcoin China actually charges no trading fees and does not charge any fees for international spending. This allows people with a lot of Bitcoin to trade with people in other countries without fees, which causes China to lose money that would normally come in. As for when the new cryptocurrency will arrive in China, there is nothing confirmed. However, it will certainly be slowly introduced into the economy and will probably not completely replace paper currency. It will come to smaller areas and grow slowly across China over the years. In the near future, this slow crawl will creep across China and coexist with paper currency and slowly overtake it with incentives to use digital currencies over paper ones. Please note: this is just an example. Get a custom paper from our expert writers now. Get a custom essay.