Central Bank Governor of China took the view that Digital Currencies will inevitably replace cash and they will most likely regulate any Digital Currencies used as legal tender.
Also, the Governor mentioned that China will issue its own digital currency. Regarding its design, it will be:
- “fundamentally different” to bitcoin;
- blockchain technology may not be used;
- but it will most certainly be based on “advanced cryptographic algorithms that will be continually upgraded”.
See post from BTCC here for more details.