The People’s Bank of China has announced that it is close to introducing the first national cryptocurrency known as the Digital Currency Electronic Payment (DCEP).
The major objective of the new blockchain-powered currency would be to clamp down on illegal online gambling, among addressing money laundering practices, and other financial crimes, news outlets reported.
There has been little exact information about the cryptocurrency, but experts believe the currency would allow the government to track suspicious payments, locate funds allocated to terrorist groups, identify tax evasion, and specifically address online gambling – both within the borders of the country and abroad.
People’s Bank of China Digital Currency Research Institute Head Mu Changchun has said that the cryptocurrency will allow users to benefit from ‘controllable anonymity.’
He further acknowledges the desire of users to benefit from the inherent anonymity of cryptocurrencies, and noted that this would be the case up to a point so that potential fraud and other electronic criminal activities can be investigated, Mu said:
We know the demand from the general public is to keep anonymity by using paper money and coins … we will give those people who demand it anonymity in their transactions.
China has been meticulously dealing with cryptocurrencies, and specifically those used to gamble with, including Bitcoin and TRON. Estimated 12.7% of all criminal activities online involved gambling in 2019 so far.
Gambling Off Limits in China
China has maintained a firm gung-ho opposition against online gambling, with the obvious exception being Macau, the territory which opened for business in the 1990s to harbour one of the largest gaming hubs in Asia and the world.
Meanwhile, all gambling websites in the mainland are blocked by the so-called ‘Great Firewall’ designed to suspend access to unauthorized websites, gambling venues included.