The central bank of China is looking into developing a national cryptocurrency. Do you think this will hurt the dollar?

[quote]CHINA’S central bank is recruiting blockchain experts to step up efforts to develop an official digital currency.
...
PBOC set up a special team in 2014 to look into digital currencies, research the legal, monetary and technological framework, and study the impact of digital currency on the economy and financial systems.

However, PBOC Governor Zhou Xiaochuan said in a previous interview with Caixin magazine that there’s no timetable for the launch of the digital currency.[/quote]

http://mobile.shanghaidaily.com/
business/finance/PBOC-aims-to-
develop-digital-currency/shdaily.shtml

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SW-User

how does digital currency work. is it like video game currency? what stops people from hacking the currency.

Invisible · 26-30, M

@theowl: Order is kept through the blockchain. In essence, the blockchain is a publicly held record of all transactions using crypto wallets. What keeps attackers from creating fraudulent transactions is that the blockchain uses an asymmetrical (public and private key) encryption scheme so that in order to send money you need to encrypt a message using the private key that only the wallet holder has and containing the public key of the receiver. It's basically the same as guessing a password, only it uses a long random key making it a lot less vulnerable.