[size=36]Why did China decide to launch an official cryptocurrency to rival Bitcoin?[/size]
Based on the details provided by the entities linked to the Central Bank of China, the cryptocurrency will be backed up by traditional currency reserves and will allow people to transfer funds even if they do not have a bank account.
Earlier this month, a senior official of the People's Bank of China (PBOC) said the cryptocurrency was "about to emerge," although no exact dates have been set for its official disclosure.
The report also showed how the unspecified cryptocurrency could be used to support and improve China's already expanding surveillance network.
Unlike current cryptocurrencies, central authorities will be able to gather information, and identities are likely to be linked to individual portfolios, making them completely unknown, unlike Bitcoin.
Cryptocurrency is supposed to require users to own smartphones, even if they do not have bank accounts. Current estimates indicate that about half of China's 1.4 billion people own smartphones.
The new Chinese currency could compete with the new Facebook, largely because Facebook is blocked in China, giving the government a possible market monopoly.