China: Shenzhen Special Economic Zone to Include Digital Currency Research

Published at: Aug. 18, 2019

On Aug. 18, the Central Committee of the Communist Party of China outlined the plans for the future development of the Shenzhen Special Economic Zone, including the research and promotion of digital funds and the national cryptocurrency based on the renminbi.

According to Chinese news agency STCN:

“Mutual recognition of fund products. Promote interoperability with Hong Kong and Macao financial markets and mutual recognition of financial (fund) products. In the promotion of the internationalization of the renminbi, we will try first and explore innovative cross-border financial supervision. Supporting innovative applications such as digital money research and mobile payment in Shenzhen.”

Not every digital currency is decentralized

As Cointelegraph reported recently, the People’s Bank of China has already claimed that its digital currency “can now be said to be ready.” 

Still, as was explained in the dedicated follow-up article, it will be powered by a two-tier operating system, which will not be fully decentralized. So, according to various analytics, it cannot be called a true cryptocurrency.

In the meantime, while political conflicts continue within China, Hong Kong is paying higher prices for Bitcoin (BTC).

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