Forget bitcoin, China’s crypto-yuan is set to transform banking
Digital currencies could become substitutes not just for physical cash but also for bank reserves
So is China readying its own bitcoin? Banish the thought.
It’s far bigger than that. Yes, just like any other crypto-currency — or for that matter, cigarettes in POW camps — the upcoming digital yuan will be “tokenised” money. But the similarity ends there. The crypto-yuan, which may be on offer as soon as 2020, will be fully backed by the central bank of the world’s second-largest economy, drawing its value from the Chinese state’s ability to impose taxes in perpetuity. Other national authorities are bound to embrace this powerful idea...