PBOC Hires Blockchain Engineers Who Will Oversee Creation Of The "Digital RMB"

Tyler Durden's picture

For those who can’t quite reconcile the Chinese government’s tentative acceptance of bitcoin and other cryptocurrencies with the inherently anarchistic principles espoused by bitcoin's creator, here’s yet another clue to support the theory that the Chinese government has decided to tolerate and regulate digital currencies in hopes of learning how to apply the technology to its own digital currency.

At its core, the hypothetical “digital RMB” will subvert bitcoin’s core mission – that is, to enable individuals to circumvent government control and monitoring. Instead, Chinese policy makers intend to use the currency to strengthen the Communist Party’s ability to monitor its citizens for evidence of money laundering and other financial crimes, as MarketWatch noted earlier this year.

Of course, the PBOC’s official line is that it believes a blockchain-based digital currency would allow it to make more accurate monetary policy decisions by improving its ability to gather data on financial flows…but, as with all policies in China, maintaining social control and enforcing laws is the No. 1 priority here. People’s Bank of China Gov. Zhou Xiaochuan has said it will take China approximately 10 years to fully embrace the digital renminbi, though he said later that there is no official timeline.

To that end, the Shanghai Daily reports that the PBOC has officially launched its own blockchain research institute, and is seeking to hire engineers who to oversee the creation of what could become the first blockchain-based fiat currency.

Here’s SD:

“The People’s Bank of China’s institute of printing science is offering six positions for the design and development of digital currency-related software and hardware framework, a recruitment notice said, adding that candidates with experience in blockchain and Big Data technologies will be preferred.

 

The candidates must hold master’s or doctoral degree in computer science, information security and cryptography, according to the notice.”

As Cryptocoins News points out, the hiring drive comes soon after the bank’s vice-governor, Fan Yifei, published a Bloomberg column opining that the best way for governments to drive innovation of digital currencies is by creating their own, which will stay under their control. Yifei sees reduced operating costs, increased efficiency and a broad range of new applications as the many outcomes of moving from a paper-based currency to its digital form.

The creation of the institute represents an expansion on a public-private partnership sponsored by the Chinese government that was launched to explore the feasibility of creating a digital RMB. That partnership, which involves experts from Citibank and Deloitte, was first reported in early 2016. China is also already experimenting with using a blockchain-based shadow system for clearing trades in local interbank credit markets.

The PBOC isn’t the only central bank that’s exploring the feasibility of its own digital currency. The Bank of England joined with researchers at University College in London to create RSCoin, a digital currency for central banks. The Bank of Canada has also said it is developing a blockchain-based digital version of the Canadian dollar. Central banks in Russia and Australia have also expressed interest in exploring digital currencies.

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Erek's picture

Their (all CBs) fiat isn't worth a shit so now they want to go digital. How long before they fuck that up too?

old naughty's picture

so PBOC confirmed yuan not becoming reserve currency?
hummmmm...

07564111's picture

Multi-Polar = No Reserve Currency

Troy Ounce's picture

 

 

My prediction:

They will introduce a block chain based Yuan next to the fiat Yuan. With that, the block chain Yuan is of no additional value because everything is interchangeable. 

If it smell, looks and feels like BS....

Vilfredo Pareto's picture

They will eventually replace the paper fiat yuan with the block chain version.

 

You just have to think one further move ahead.   Few people really like paper currency anyway.  It is slow, dirty and annoying, and takes up space.    

 

It is only useful for hookers and blow so I hope it doesn't disappear entirely.

Troy Ounce's picture

 

 

Nope: Gresham's Law.

"Bad money drives out good money".

Look it up

 

GoldVu's picture

@Troy Ounce

That has already been thought of and incorporated into the design of BullionCoin. There are multiple layers of incentives for people to perform transactions with it. These incentives will enable BullionCoin (http://www.goldvu.com/bullioncoin.html) to defy Gresham's Law, even though it's backed by gold & silver.

The way it's setup is very neat & resolves a lot of the problems both fiat and crypto currencies suffer from.

ramon_espino's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.jobproplan.com

a Smudge by any other name's picture

"for the design and development of digital currency-related software and hardware framework which integrates rainbows, a box full of chickens and Confucian principles of social order"

Slomotrainwreck's picture

Back Doors everywhere. Yuan for the enlightened.

Making Merica Great Again's picture

Another shitcoin attemp to take down bitcoin.

How long will it take to understand it? Bitcoin is strong because no fucking governments are allowed.

Erek's picture

Bitcoin is strong now but the govs of the world will one day find/invent a way to force themselves in or force you out.

Goverment is nothing but a blood-thirsty, money grabbing monster out to get whatever you have.

old naughty's picture

govs of the world?

...will one day...?

real-ly?

GoldVu's picture

I suspect Bitcoin will eventually be sidelined, primarily as it's not backed by anything.

After years of careful watching and seeing what works & doesn't - there is a new digital currency about to be released that will nail most to the wall.

BullionCoin is a digital currency that is 100% backed by physical precious metals on a 1:1 basis. See here for more details: http://www.goldvu.com/bullioncoin.html

The main differentiator to all the other cryptocurrencies is that coin creators will get PAID a portion of the transaction fee that their coins were involved in - FOREVER!. Also merchants will be PAID 0.33% of the value of the transaction they received (normally they have to pay the banks 2-4%).

All holders of BullionCoin can also redeem their coins back into physical precious metals and have it delivered to them.

Furthermore, Bitcoin only has a velocity of around 4% which indicates hoarding for speculation rather than it being actually used as a currency should, which is to faciliate trade by being a transaction enabler. Compare that to Tether which is 1:1 backed by USD and you will see that its velocity is 90-95%. BullionCoin has been designed to be a high velocity currency specifically to facilitate international trade & transactions.

There has already been a massive sign up by big financial institutions & banks (425 just in one go) - news will be released shortly.

BullionCoin is no shitcoin - it'll become the new gold standard.

Womb Service's picture

Goldvu? Any relation to Tom Vu?

MaxThrust's picture

What entity holds the coins that back BC or are they owned by individual dealers around the world?

 

GoldVu's picture

@MaxThrust

There are going to be 2 exchanges created at launch - the BullionCoin Exchange (BCX) - for the BullionCoins to be traded in:

Primary (wholesale) market: the physical gold & silver is bought here & and then converted into coins - primary participants can trade the wholesale coin contracts between themselves, or sell it into the Secondary market

Secondary market: This is where individual coins are bought / sold / transferred / transacted. This is the retail market that interfaces all users (individuals & companies) and merchants together. 

The BCX is owned by a company called Digital Gold Ltd based in the Isle of Man (Great Britain).

Individuals an other exchanges will hold their own e-wallets & coins much like other cryptocurrencies.

However, due to the regulations that everyone can see coming down the pipeline (and to allow institutions to use it - which is why they're not touching Bitcoin), anyone wanting to create an e-wallet must go through a basic KYC process.

That KYC will allow BullionCoin to avoid the global regulatory hit that all cryptocurrencies are about to be whacked with. So when other cryptos have locked up then BullionCoin will still continue like nothing happened.

UncleChopChop's picture

can you try to sell it any harder? jesus. ease up there fella. planty of snake oil buyers around to keep ya happy.

sober_kiwi's picture

I suspect Bitcoin will eventually be sidelined, primarily as it's not backed by anything.

 

I read through your website. I noticed at least three grammatical mistakes you may want to fix, which I thought a professional team of, say, more than one person would have proof-read. How about spending less time on writing wikipedia articles and pumping your coin, and more on the basics? Give me a good reason why I shouldn't personify bullionncoin as just you - I havent yet found the developers bio page yet, I rage quite at the bad grammar.

Lets start with the above quote. Your comment indicates you believe bitcoin needs to be backed by something - as if its value, or its usefulness was somehow linked to being backed. This is what is known as utility. So lets compare the utility of bitcoin, and the utility of bullioncoin.
I can take my bitcoin, and purchase at various local shops, a variety of good and services, including food, and gold. With bullioncoin, I have in effect a digital GDX token, which I may be able to withdraw gold from, if im in the correct country.
Thousands of bitcoin withdrawal locations, vs 1, or maybe a few dozen gold withdrawal sites once you are up and running?

Yes, anyone can start their own crypto, but that does not imbue it with any additional utility beyond any of the other 800 altcoins out there. The Crypto with the most utility at present is bitcoin, because of how many merchants transact in it. It takes a long time for a merchant/company to upgrade any software or system. No, bitcoin doesnt have smart contracts, or many of the other inovative features other coins have - but it gives me 10,000 more transaction opportunities than the other cryptos I own. Bitcoin also gives me far more local transaction opportunities (liquidity) than my gold, silver, lead, or a bag of salt gives me. Im in New Zealand, so your mileage may vary.

 

Slomotrainwreck's picture

No doubt, my local coin shop will be buying gold with crypto's and vise versa.

shocktherapy's picture

https://phys.org/news/2017-05-highlights-significance-cryptocurrencies.html

While bitcoin remains the dominant cryptocurrency both in terms of market capitalisation and usage, it has conceded market cap share to other cryptocurrencies – declining from 86 per cent to 72 per cent in the past two years.
 

Why ?

 

How To Create A Cryptocurrency in 6 Minutes

https://www.youtube.com/watch?v=eXEHWTTiE-I

Troy Ounce's picture

 

Bad money drives out good money.

Read this again.

francis scott falseflag's picture

Then 'good money' is Gone With The Wind.

null's picture

Not disagreeing but still do not see the mechanism by which the governments are actually disallowed.

Ed Jobb's picture

I smell a Duthch Tulip (diff to Dutch Oven) situation here, but not by much.

pizdowitz's picture

Mnuchin: That can be potentially lethal.  I hope we have someone working that already..

Manipuflation's picture

Kenny Rogers   I have to get back down on that river for Independence Day no matter how beat up I am.  The forth of July is only a date.  Bruised and battered, torn and tattered, look at me it doesn't matter; still got some fight left.  

whatsupdoc's picture

Can I ask a dumb question?

Just how many different crypto currencies can there be?  It seems to me that just about anyone can start one.

In an above comment is a link to GoldVU.  If there were to be a gold-backed crypto .. can't the gold be stolen?  It'll have to be stored somewhere!  Can you imagine a father-son business guaranteeing the gold deposits??  I don't think it is in the best interests of any government to allow or sanction a gold-backed currency.  If it took off they'd come in and nick the gold!

Although I like a number of aspects to crypto currencies I can't get the part where they hold the gold and I hold the crypto.

GoldVu's picture

@whatsupdoc

Yes - anyone can start a cryptocurrency which undermines their value.

However, not everyone can launch a 100% gold & silver backed currency. That takes hard money and time to do - that's the whole point of physical gold & silver bullion - it just can't be "created" out of thin air like the other cryptocurrencies are.

Risk of Theft of the bullion?

All of the gold is vaulted by the Allocated Bullion Exchange (ABX) - not by us at GoldVu. http://www.goldvu.com/allocated-bullion-exchange.html

The ABX is major market provider in the international allocated wholesale precious metals industry. GoldVu is member of the ABX and will automatically be one with the BCX upon its launch.

So whilst you should, quite rightly, always question where and how something like this can go wrong there is ZERO chance of any of your bullion being stolen by us or anyone else (we just don't have access to those vaults as they are ABX operated)

As for only holding the crypto -

The digitising part of the gold & silver relates to its Bearer Title / Title of Ownership. This digitisation allows you to transfrer title of ownership of the bullion electronically to anyone else just by a transaction. The new owner can then withdraw the gold / silver back into its physicl form, as and when they wish - there are no barriers to that happening.

The purpose of BullionCoin is to take further power away from the central banks by enabling international transfers outside the banking system. The BullionCoin transactions are cleared & recorded into the blockchain ledger in around 4 seconds (compare that speed to Bitcoin's days).

So everyone will effectively be able to transfer their gold/silver electronically across international borders to then redeem it back into physical on the other side.

shocktherapy's picture

Why not cut out the Middle person and just own Physical ? No extra fees ?

 

GoldVu's picture

@shocktherapy

That true, but only as far as the way it's stored.

If it's anything other than in your direct possession (i.e. under you bed / bottom of lake etc), then there will be some cost & risk. However, even holding it yourself also holds various risk - what if you die? do your children know which lake you dropped it inj (what if they are 6 months old - think they'll remember when you told them)? When the time comes to use it, fakes in the market or your 'need' to buy will mean you'll also get a bum price from the local you're dealing with

The way to mitigate risk properly is through balance.

Keep some at home/the lake & vault some overseas beyond the direct jurisdiction of your government (US citizens don't need to declare physical precious metals holdings - so choose somewhere like Singapore).

Digitising the title of ownership to gold & silver is also something that people should consider as it will provide you with options that go way beyond what currently exists.

Technology can be both a curse & a blessing. In this case it'll be a blessing and help us take the fight to TPTB and their central banks.

Besides this whole arguement is looking it in the wrong way. It should be - What type of currency would you prefer to use in your day to day purchases?:

  • A non-backed fiat paper currency that is going to wipe out (US Dollar) or,
  • A 100% precious metals backed currency that is going to appreciate when fiat burns
sober_kiwi's picture

So what is my business problem that your crypto is going to solve?

In my day to day purchases, I want to use a currency that is going to give me the most trading opportunities.In NZ that is NZD cash, followed by an EFTPOS card, followed by a credit card, followed by a cheque, followed by local loyalty card systems like bartercard, followed by bitcoin.

In the preservation of the time value of my past labor, I want something that exhibits the 6 characteristics of money. On the merit of being able to take possession of physical gold - bullioncoin will always offer less exchange opportunities by its centralized design. Sure, it may offer merchant credit card integration - but it is competing against many other cryptos for this added utility. How is your crypto going to get integrated with more merchants than its 20 closest competitor cryptos?

OneGram, ZenGold and RMG are all doing similar things - why is your crypto any better than these Tom Vu?

Womb Service's picture

Tom Vu promises not to steal your Gold. It is in a vault he doesn't control. Jerry Maguire controls it. Coz he's honest. Nothing can go wrong. Cheque is in the mail and I promise I won't cum in your mouth. Here is a non photoshopped picture of your shiny shiny.

GoldVu's picture

Well as with everything to do with trusting a company - it's all about due diligence - so why not try doing some and come back here with your results?

Witty comments don't replace taking the time & effort to actually finding out if what's in your brain matches reality.

Zerohedge has always been great starting point for truths that run contrary to what's peddled in the mainstream media. So why not do your part and help separate the crap from the good with a proper contribution not an unsubstantiated clever comeback? It's the only way that we're all going to make it through this clusterf*#k of a situation TPTB have created for us to suffer in.

Visit the ABX site (https://abx.com/) & contact them for more information. Ask them to provide you with whatever proof you need to satisfy yourself how secure their vaulting arrangements are and to see if this is an attempt to defraud you or not.

To give you a headstart, you can also read their Quality Assurance Framework to get a better legal feel about the whole setup - http://www.goldvu.com/allocated-bullion-exchange-quality-assurance-frame...

Troy Ounce's picture

 

The only real money is physical gold or silver in your pocket. The rest is just not yours.

Counter party risk.

I commend your efforts, though

King of Ruperts Land's picture

A gold backed crypto currency designed in the spirit of Cypherpunks, libertarians and Bitcoin would have the gold somehow distributed out in the network so as there was no central point of failure.

You would hold most of your own physical gold and be able to spend your egold credits like money.

Eventually blockchain technology will eliminate Government. That is the Libertarian Cypherpunk goal. To do this there will be physical enforcement components. Kind of like court orders and judgments.

Womb Service's picture

Yes, in a free market for money, anyone can create something new. The market decides the winner.

Lost in translation's picture

How many cryptos until the tide goes in the opposite direction, and there's just One Crypto..?

You know, "to rule them all and in the darkness, bind them."

Am I wrong to be scared?

Vilfredo Pareto's picture

In theory a block chain digital fiat currency would be the safest and most efficient.   However it would be like living in a goldfish bowl.  

opport.knocks's picture

There are persistent rumours that Bitcoin was either an CIA or NSA project, simply a beta proof of concept. That it will untimately become a Commadore 64 or WordPerfect I believe is a given. There are too many speed/scale limitations in that platform.

Most certainly there are going to be National cryptocurrencies in the next 5 years. The question is how are these going to all be linked to the BIS. Central Banks, Swift, etc.
If they put the parasites in the forced currency exchange business out of the picture, that would be a huge bonus.

shocktherapy's picture

The paradox of cryptocurrency is that its associated data create a forensic trail that can suddenly make your entire financial history public information.

Academic researchers helped create the encryption and software systems that make Bitcoin possible; many are now helping law enforcement nab criminals (Or people trying to hide their assets from the Government).

http://www.sciencemag.org/news/2016/03/why-criminals-cant-hide-behind-bi...

SilverRhino's picture

Worse than that.  A government "approved" fork in the blockchain can render you penniless with literally no recourse whatsoever.

Owe the .gov?  Boom, FORK. 

Wanted for questioning?  Boom, fork.

King of Ruperts Land's picture

Computers have come to point were they can be made to say anything, and anyone could control them and make them do anything. I wouldn't count on them being admitted as evidence much longer. I wouldn't even trust HD video.

Give me just 2 Credible human witnesses though, and I will hang Obummer for treason.

King of Ruperts Land's picture

The limits on Bitcoin's speed/scale are not a hindrance for its ultimate use as a very high value storage with all the characteristics envisioned by cypherpunks, no central control.

The Committees, development groups, and special interest trying to guide and change Bitcoin is what will ruin it and are their very existence is in total opposition to the coins Philosophy.

Was it introduced with a party with a hidden agenda? Being introduced as an anonymous white paper would be in line with the idea of no central control, not even by the inventor. It does seem to do what its stated agenda claims.

It is probably easier for an NSA to keep tabs on a world uses emails and Bitcoin, even with encryption, than a world of handwritten notes, bags of money and gold sent by private courier.

Who knows?

Exponere Mendaces's picture

Its not the first time some sovereign state decided that "GovCoin" was the way to go.

China may get more traction than most, because it can force everyone to use it. Canada tried to do this, with their "Mint Chip" initiative, but it flopped dramatically.

Whatever, one closed-off government coin isn't much of a concern for me.

Bitcoin $2,611

Where's gold?

Its

still

way

the

fuck

down

here:

Gold $1,224

LOL

 

bshirley1968's picture

As stated by me and others many times over now........There will NEVER be a currency that is allowed to compete with the money changers. ......unless you kill the money changers first.

The whole world now sees that power and dominance is derived by currency manipulation. 

You stupid little naive tech heads who think there is going to be this "free, independent, digital currency" that is used freely by free people ON THE WWW.........need to go watch some more star wars or star trek.....cause it is NEVER GOING TO HAPPEN. 

Oh, I believe in block chain and digital crypto, but I don't believe it will not be controlled by the state banks.....and you are lying to yourself if you think otherwise.   Masses will never accept what is not state approved.

francis scott falseflag's picture

"unless you kill the money changers first"


Don't worry, when the equities bubble bursts ...

                        BINGO.  

We'll have lots of flowers to send and funerals to attend.