Your first digital currency might well be…your national one. And it’s good news for physical trading.

Recent article disclosed some details about China’s Central Bank Digital Currency (CBDC) in the works.

One of China’s central bankers talks about “restrain the public’s demands for crypto assets and strengthen the country’s sovereign currency.” Bravo! The authorities beginning to realize that we are leaving in what is rapidly becoming a digital economy and they need to keep up with it (be sure almost all cenbanks are on it currently).

Of course it’s gonna be bad for personal liberties as it’s gonna be more traceable than cash & ensure tax collection. But that’s why they gonna do it, and soon.

On the other hand it’s gonna be great for trade. Why? Because you will be able to automate it, by ensuring delivery vs payment through smart contracts (and for that you need payments in digital (crypto) currency).

By the way I’m not sure article’s author has chosen the correct title — “But It’s Not a Crypto”. A crypto-currency uses “cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets”. You think Chinese don’t want this for their digi? And no worries, in a couple of years they will get blockchain scalable enough to run crypto payments even for such a huge population as China’s.