The Chinese government is releasing its own virtual currency that it is calling a "cryptocurrency"...
The currency will be called DCEP which is short for Digital Currency Electronic Payment and is designed to handle 300,000 Transactions per second.
They stated that the Chinese central bank PBOC will control the supply.
Who will be the first to receive the supply?
The industrial bank of China, the second-largest bank in the world, the Bank of China and the Agricultural Bank of China.
Two of China's largest financial technology companies, Alibaba and Tencent will also be receiving the currency.
The currency could launch as soon as November 11th. This happens to perfectly align with China's busiest shopping day, known as Singles Day.
How will they mitigate risk?
Mu Changchun stated that the currency would not rely entirely on the blockchain architecture.
He said the country would instead employ a two-tie structure with the central bank on top and commercial banks below.
They plan to implement real-name verification as well as other measures to counter illegal activities such as money laundering, terrorism financing, and tax evasion.
The central bank insists that it will adopt a centralized management model.