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

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.

Comments

GoldVu Troy Ounce Tue, 07/04/2017 - 06:36 Permalink

@Troy OunceThat 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.

In reply to by Troy Ounce

GoldVu Making Merica … Tue, 07/04/2017 - 05:11 Permalink

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.htmlThe 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.

In reply to by Making Merica …

GoldVu MaxThrust Tue, 07/04/2017 - 06:51 Permalink

@MaxThrustThere 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 marketSecondary 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.

In reply to by MaxThrust

sober_kiwi GoldVu Wed, 07/05/2017 - 03:56 Permalink

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. 

In reply to by GoldVu

shocktherapy Making Merica … Tue, 07/04/2017 - 04:55 Permalink

https://phys.org/news/2017-05-highlights-significance-cryptocurrencies… 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 Minuteshttps://www.youtube.com/watch?v=eXEHWTTiE-I

In reply to by Making Merica …

whatsupdoc Tue, 07/04/2017 - 05:06 Permalink

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 whatsupdoc Tue, 07/04/2017 - 05:34 Permalink

@whatsupdocYes - 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.htmlThe 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.

In reply to by whatsupdoc

GoldVu shocktherapy Tue, 07/04/2017 - 05:55 Permalink

@shocktherapyThat 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 withThe 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

In reply to by shocktherapy

sober_kiwi GoldVu Wed, 07/05/2017 - 04:26 Permalink

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?

In reply to by GoldVu

GoldVu Womb Service Tue, 07/04/2017 - 06:27 Permalink

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-fram…

In reply to by Womb Service

King of Ruperts Land GoldVu Tue, 07/04/2017 - 13:33 Permalink

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.

In reply to by GoldVu

Lost in translation Tue, 07/04/2017 - 05:51 Permalink

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?

opport.knocks Tue, 07/04/2017 - 06:36 Permalink

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 opport.knocks Tue, 07/04/2017 - 06:45 Permalink

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-b…

In reply to by opport.knocks

King of Ruperts Land opport.knocks Tue, 07/04/2017 - 13:07 Permalink

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?

In reply to by opport.knocks

Exponere Mendaces Tue, 07/04/2017 - 07:55 Permalink

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 $2,611Where's gold?Itsstillwaythefuckdownhere:Gold $1,224LOL 

bshirley1968 Tue, 07/04/2017 - 08:24 Permalink

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.