People’s Bank of China has recently revealed a digital renminbi – e-RMB. The Chinese bank also encouraged the people to shift to the digital currency. This is a hallmark moment as e-RMB is the first digital currency coined by a major economy which pose a credible threat to cryptocurrencies at large.
A pilot test was run for the cryptocurrency in a few targeted cities where government officials received half of their salaries in the form of the new digital currency. After the success of the pilot, the cryptocurrency has been launched with the hopes of a mass scale adoption.
Bitcoin (BTC) was primarily designed to be a digital currency by the infamous Satoshi Nakamoto. However, the cryptocurrency failed to become one. As the popularity of the crypto market rises, the masses debate on which crypto is better suited to become the digital currency of the future and while many people have realized Bitcoin is not fit for the role, others are still hopeful. Bitcoin has a high transaction cost, poor scalability and being valued at $60,000 it is definitely not fit to be a digital currency. The rise of a viable digital currency can mean displacing the king from its throne if it is not able to establish itself as an asset.
The digital currency of China means the potential loss of around $1.4 billion potential and active users. The Asian market has had a love-hate relationship with cryptocurrency and the popularity of cryptocurrencies in the region does prove to be favorable.