Economist Zhou Xiaochuan, governor of the People’s Bank of China (PBOC), who is in charge of the country’s monetary policy, was quoted by local news media outlet China Daily as saying the development of digital currency is “technologically inevitable”.

As part of a recent press conference at the annual National People’s Congress, Zhou also admitted that digital currency will ultimately diminish cash circulation.

Lately there have been all sorts of rumors about various different national cryptocurrencies, but to date, Venezuela is the only country to push ahead and officially launch one. The “Petro” is backed by the country’s oil reserves and pre-sales, according to President Nicolas Maduro, raised $5 billion in just a few weeks.

In 2017, the People’s Bank of China, China’s central bank, reportedly completed trial runs on the algorithms needed for digital currency supply. After trials involving fake transactions between it and some of the country’s commercial banks, Yao Qian, director-general of the Institute of Digital Money at the PBOC, said China’s central bank had successfully designed a prototype that can regulate the supply of its future digital fiat currency.

The only reason for China’s recent clampdown on other digital currencies such as Bitcoin seems only to be so they can launch their own digital currency without any competition.

We are heading rapidly towards a cashless society.

Image: Representational only.