An educational institution that is tasked with training officials of the Chinese Communist Party recently published a book about cryptocurrencies. In a local news report from May 19, the Party School of the Central Committee, also called the Central Party School, published the book on disruptive technologies as part of a series of publications about cryptocurrencies.
Past parts of the series have included topics about artificial intelligence and blockchain. The goal of publishing the book is to provide information to the party officials and general public about emerging and new technology. The executives of the Chinese Central Bank, commercial banking leaders and regulators were asked to write the book's prologue.
The publication begins with the history and origin of Chinese and other fiat currency. It goes on to offer an overview of the credit currency system and its pros and cons. This segues into a few chapters about cryptocurrencies and the development of Bitcoin. The book also examines the nature and future of different digital currencies. It goes into detail about what a cryptocurrency exchange and initial coin offering are. Finally, it discusses and examines regulatory problems around these currencies.
An entire chapter of the book is dedicated to Central Bank Digital Currencies, which are also referred to as CBDCs. This chapter explains strategies behind the digital yuan and the impacts that it could have on existing payment systems. It offers a full analysis and comparison of CBDCs, the Libra of Facebook and stable coins.
This publication also discusses how a super-sovereign cryptocurrency, such as Libra, has a lot of risks. It challenges the monetary rights and rules of countries that have an imperfect financial market infrastructure. The book also offers ideas on counter-regulations in order to address emerging trends in financial markets.
In the past, reports about the Bank of China carrying out pilot testing for CBDCs in different sites have found that the nation is interested in getting more into digital coins. This is despite its public statements that are generally anti-cryptocurrency. In other news, Binance registered a new website domain with the Chinese government on May 19.