China’s new cryptocurrency of 2024

DCEP

In 2021, there is the only official cryptocurrency of the PRC tied to the yuan. DCEP (Digital Currency Electronic Payment) is a development of the Chinese government, with the local Central Bank acting as the issuer.

Only citizens from the “white list” – PRC residents with the highest level of reliability in the country’s social credit system – are allowed to test the coin.

The testing stage is necessary to find the weaknesses of digital yuan and exclude them before the large-scale introduction of the technology into the global economy.

History and progress of the implementation

The development of a national cryptocurrency in China began in 2014, but for several years, the Digital Currency Research Institute did not provide information on the progress of the experiment. In 2019, the government announced the start of DCEP testing.

Liberalization

China was one of the first to react to the emergence of cryptocurrencies. The government imposed a strict ban on mining, and passing blockchain conferences were closed by the regulator.

The attitude to cryptocurrency in China became better after Mark Zuckerberg announced his own project Libra. The influence that the Facebook creator has in the world motivated the country’s government to change its point of view. As a result, bans were partially lifted and the country started actively developing its own coins.

In 2021, the PRC is taking large-scale measures to develop its own coin and displace the American dollar from the world market. Since May, the country has completely banned mining and trading in cryptocurrencies, and exchanges stopped serving Chinese traders The main advantage of DCEP is the minimal dependence of the coin on oil prices, since it is this factor that over time becomes a big problem for the US currency.

Usage

The purpose of the digital yuan became known in 2019 from the statement of the head of the People’s Bank of China. DCEP will be used for electronic payments in retail and cross-border transfers between financial institutions.

The Chinese cryptocurrency is a way to reduce the risks of the country’s traditional banking system and increase its activity. The capabilities of the new instrument are meant to motivate financial institutions to fight for market leadership with renewed vigor.

Large-scale testing of the digital yuan will take place in 2022 during the Beijing Olympics.

Impact on the financial world

The PRC-US trade war started in 2016 at the initiative of American President Donald Trump. This strengthened the Chinese government’s decision to create its own cryptocurrency that would lessen the impact of economic sanctions. Experts in finance prophesize the digital yuan’s status as the world’s reserve currency. DCEP is an opportunity for China to strengthen its market position and one of the steps to develop its domestic economy.

LCFHC

The Chinese government actively supports the development of local tokens. One of the companies that received funding and assistance from the government was LCFHC. The startup is working on the creation of the LCF token.

Several Chinese billionaires and the Rothschild clan are considered the founders of the project. In 2017, the company set ambitious goals:

• Attract 100 million citizens to test the platform.
• Launch an LCF coin to be used for online and cash transactions.
• Secure China’s place as a leader in the global cryptocurrency market.
• Move China’s monetary economy into the blockchain space.

The organizers plan to eventually fully introduce the LCF token into commerce. The problem is that the launch of the project was never realized. Over time, representatives of the company stopped giving at least some information in the public field.

LCF

This coin claimed to play a major role in China’s digital economy. However, in 2021, LCF still cannot be bought. Many media and analysts consider the project a fake. This is evidenced by the registration form of participants, who are asked to enter information into a Google document.

CHIA

The launch of the new Chinese cryptocurrency in 2021 has contributed to the increase in demand and the growth of prices for HDDs and SSDs. The drives are used for CHIA mining. The free space of the drives was used to get the necessary computing power and data storage.

At launch, Chia Network was positioned as an improved blockchain and a platform for smart transactions that could change all payment systems in the world. The developers received $3 million as an initial investment and raised another $28,000,000 after rounds of token sales. The public sale of CHIA started in May 2021.

Features and working principle

To make it possible to mine cryptocurrency using HDDs and SSDs, the developers created a new consensus algorithm Proof of Space and Time. The validator in this system is the free space of the drive. Users are rewarded in direct proportion to the disk space provided.

Where to buy

The first platform that opened sales of CHIA was HotBit. Later, the coin appeared on other exchanges:

CHIA is trading at $183.37 in September 2021.

How to mine or get free

Using the Proof of Space and Time consensus involves applying processing power to transactions from SSDs and HDDs. Therefore, the system being assembled for mining must be configured to be filled with HDDs. HDDs and SSDs are allowed to take any, the main thing is the presence of a Sata-interface.

The configuration can include cheap motherboards, if they have built-in support for the Sata 6G interface, which increases the speed of data exchange in the system. In addition, it is worth finding a good processor (Ryzen 7 3700 and above) with enough RAM (at least 16 GB), since the speed of raft formation depends on these indicators.

After assembling the system, you need to download the software for mining on the resource GitHub, launch the CHIA application and create a wallet, following the instructions. Then you need to select and configure disks for work. After it will remain to press the “Create site” button and start mining.

You can get currency for free on special sites. To do this, you need to connect a CHIA wallet and perform a simple action to collect coins.

The future of CHIA

The new Chinese cryptocurrency is gradually appearing on a large number of exchanges. In 2021, anyone can buy or sell CHIA. This was the goal set by the developers before the launch of the project.

Analysts feared the hype around the “Chinese bitcoin”. The coin became a catalyst for the growth of prices for all hard disks. At the same time, the asset has a dim future for a number of reasons:

• Cryptocurrency staking, which eliminates the need to create farms and provide computing power, has been gaining popularity in recent years.
• The coin does not have a full-fledged project behind it.

In 2021, currencies tied to platforms that can benefit the crypto community are becoming popular.

Regulation of the crypto market in China

The PRC is one of the few countries that has actively imposed various restrictions on blockchain systems and tokens. First, in 2013, transactions using BTC came under sanctions. Since 2017, ICOs have been banned in the country, and cryptocurrencies themselves were outlawed, it is impossible to use them as a means of payment.

In mid-2021, China completely abandoned mining in four provinces. They were Inner Mongolia, Sichuan, Xinjiang and Yunnan. The corresponding government decision was the final one after sanctions and restrictions on the mining of digital coins, which were regularly imposed for several years.

One of the reasons for the total ban on cryptocurrencies experts call the transition of the development of their own asset to the final stage of testing. If successful, it is DCEP that will be called the national coin, which will be supported by the state, and bitcoin and other assets will become its competitors.

Ranking of Chinese cryptocurrencies

The PRC tries to shield its economy from the influence of other countries. This is especially true for the digital sector, which brings more than 30% of the country’s GDP.

China Information Technology Industry Development Center (CIID) published its own 12th ranking of the top cryptocurrency projects in 2021. The top ten included:

• EOS.
• Ethereum.
• TRON.
• NULS.
• GXChain.
• BitShares.
• Ontology.
• NEO.
• STEEM.
• COSMOS.

There are a total of 37 coins on the list, including Ethereum Classic (16th place), Bitcoin Cash (26th place), and Ripple (30th place).

Best exchanges to buy

Despite the fact that the exchange and trading of cryptocurrencies in the territory of the People’s Republic of China is prohibited, many companies have found a way to continue operating. These exchanges appeared in China, but due to the imposed restrictions were forced to change their dislocation and register a legal entity in countries with a favorable cryptocurrency climate:

Frequently Asked Questions