China stops development of its virtual currency

The use of Blockchain technology by the governments of the world, to increase their acting capabilities, is something that has been on the table for years. However, it was not until recently that the creation of virtual government currencies became a necessity for most states.

The moment of this transformation of the Blockchain from an element that was positive to have, even a necessary and urgent factor to incorporate into the national economic strategy, was given thanks to Libra. Well, it was at the moment that, in the middle of last year, the future launch of the virtual currency of Facebook was announced. That the governments of the world began to put their efforts in the development of their own virtual currencies.

And it is that, the exit to the market of a virtual currency, with the support of several of the most powerful companies in the world. It represents an important threat to the monopoly that governments have maintained over monetary policy for several decades.

Leading to that, while some countries assume the policy of simply prohibiting the entry of Libra into their territories. Others decide that the time has come to incorporate the advantages of cryptocurrencies into their economic system. But keeping them under close government surveillance. This being the path chosen by China in the development of its virtual currency.

Coronavirus slows progress

Thus, China soon became the country with the greatest advance in the development of its own virtual currency. Causing great expectation within the crypto world, while everyone was aware of the future operation of this virtual yuan. However, it may take a while to launch.

And is that, the unfortunate emergence and expansion of the coronavirus in the territory of China. It has disrupted the normal functioning of its economy. Paralyzing cities and branches of entire industries, while the authorities of the Asian country struggle to stop the spread of the disease.

Something that would have also affected the development of the virtual currency of the Chinese government. By preventing the team of the People's Bank of China, the central bank, from continuing to work on it. As the official government newspaper, Global Times, reviews:

«The outbreak of coronavirus has caused the postponement of the resumption of work in government institutions, including the People's Bank of China. Policy makers and research staff participating in the DCEP project is no exception, which weighs on the development process.

In this way, the strong impact that the coronavirus is having on the Chinese economy would be obvious. And by extension, on the development of Blockchain technology, putting on hold one of the most important projects in the sector in recent years.

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Posted via Steemleo