China’s Shenzhen Special Economic Zone will now support the research and promotion of digital funds and the national cryptocurrency based on the renminbi.
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
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.