China’s President Xi Jinping never tires of emphasizing that his country should become a leader in blockchain technology. A digital currency of the Chinese central bank, People’s Bank of China PBoC, is part of the country’s strategy. Although not many details of the technical background are known, the central currency is likely to be based on the block chain. The E-Yuán will not be issued as a decentralized crypto currency, but as the digital currency of a centralized computer system. This allows for state supervision and regulation, unlike Bitcoin, for example.
This would enable the PBoC to inspect every transaction that is made and trace it back to the originator. The Chinese central bank generates the E-Yuán and distributes it in the private sector. As was recently the case in Louhu, in Shenzen near Hong Kong in southern China. In around 3,400 stores, consumers can pay with the new currency, the digital renminbi, in a large-scale field trial by the central government. The aim is not just technological progress. Experts see the country’s push as the central effort to achieve complete government control over its citizens’ finances.