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Unspoken need of central bank: to curb corruption with digital currency

There has been significant progress on the issuance of digital currency by PBOC. Blockchain-based commercial paper exchange has been successfully test in its beta stage. The beta also signals the start of test operation of digital currency platform. It’s also reported that after the 2017 Spring Festival, the PBOC Digital Currency Research Institute will be officially founded.
The Chinese authority is actually accelerating the adoption of digital currency. But why? One unspoken need is to curb corruption.
In May 2014 , investigators found 200 million yuan in cash at Wei Pengyuan’s house, weighing 1.15 tons. 4 out of the 16 banknote counters burnt out on site. This is the corruption case with record high amount of money since 1949.

RMB corruption

A netizen made a image comparison: a standard soccer field is about 7,140 square meters and one million 100 Yuan banknote equals 11,935 square meters, which means that Wei’s cash could at least cover 3 soccer fields! In October 2016, Wei, former senior energy official, was sentenced to death with a two-year reprieve for accepting bribes of 211.7 million yuan ($31.4 million) and possessing a huge amount of property from an unidentified source, according to a court in Hebei province.
Wei is not alone.

An official in the Chongqing Department of Transportation, stashed 9.39 million RMB cash in 8 sealed cardboard boxes. A broken water pipe in the toilet, where the cash were stored, leaked the secret.

Yao Jianhua, former deputy head of Tianjin Tanggu District, was reported. The prosecutor found gold, RMD and USD and certificate of bank deposits from fish stomach, screen door, waste paper box and flue sealed with cement in his house.

An official in Guizhou Province hid deposit certtificate in a special belt. Then the belt was stolen along with trousers. The case was exposed after the thief threw away the trousers.
In addition to corruption, excessive cash also raises other concerns related to cash. Such as drug trafficking, money laundering, terrorism and other illegal activities, where the regulatory force found themselves blind.

The current banking system is weak in monitoring money laundry or crime-related transactions. None of the corrupted officials had unusual transaction on their bank accounts as they are fully aware that the account is being watched by authorities. Once people withdraw cash from bank counter or ATM, the authority cease to track the flow of money and the feeling of losing control is not good. Judging from the money laundry case via bitcoin exchanges, the Chinese authority has strong momentum to log money flow in the monetary system, which blockchain technology outperforms any other options available. Blockchain may restore control and monitoring for financial regulatory authorities to play a more perfect supervisory role in the monetary network. Digital money would be a crucial cornerstone.

However,the preservation of privacy, especially the personal property, is what the bitcoin community fight for, even the root cause of recent debate on scaling.
Since the new administration came into power in 2012, the government has been cracking down corruption plagues among officials. The CPC will convene its 19th National Congress in 2017, and it needs to accomplish several missions, among which to build a clean CPC is an important subject.

“The fight against corruption has gained ‘crushing momentum’, netting both ‘tigers’ and ‘flies’ with no letup expected in the future.”

So far there is no official report that link bitcoin with corrupted officials in China.

COMMENTS(23)

  • BitcoinAllBot
    2 months ago BitcoinAllBot

    Here is the link to the original comment thread. Or you can comment here to start a discussion. Author: 8btccom

  • hgmichna
    2 months ago hgmichna

    One suspicion is that some PBOC (People’s Bank of China) officials are using a trick to influence the bitcoin price temporarily. They issue a statement indicating that they might put new regulation the Chinese bitcoin exchanges.

    Predictably, the bitcoin price tumbles. This can be used to earn quite large amounts of money.

    Even statements that there will be talks with the bitcoin exchanges have proved sufficient to let the bitcoin price fall precipitously. It seems to be an easy tactic.

  • hl5460
    1 month ago hl5460

    With 1000 dollars each, it seems that bribing with bitcoin would be a good idea.  One USB stick will do the job with no third party required.

  • HabBear
    1 month ago HabBear

    No, but only because bribery is a bad idea, in any currency.Purely speaking of the transaction type, yes. Bitcoin allows two parties to conduct a transaction of any size without having to be near each other. So the trauma caused by the bribe can be happening away from the person asking for the bribe. Further, once the briber receives the bribe they can make it disappear in a nearly infinite number of ways so that it can’t be retrieved. The bribe can’t be found.All anyone has to do is use a bitmixer and the coins become clean of any connection to the bribe.

  • frendsento
    1 month ago frendsento

    Quote from: hl5460 on February 09, 2017, 01:58:43 AM
    With 1000 dollars each, it seems that bribing with bitcoin would be a good idea.  One USB stick will do the job with no third party required.
    I would advice you not to do it because in any angle,currency or ways bribery will always be a bad idea ! Even tho bitcoin has the capacity to  clean and make you look like clean because bitcoin is anonymous on its nature ! it will not clean your conscience ! so please as early as now dont do it because as you ask it , it was a bad idea.

  • Kemarit
    1 month ago Kemarit

    Quote from: hl5460 on February 09, 2017, 01:58:43 AM
    With 1000 dollars each, it seems that bribing with bitcoin would be a good idea.  One USB stick will do the job with no third party required.

    This is like taken out of a movie, you go to a restaurantsomeone sits beside you, you put down the USB stickthen you left, the person then beside you pick it up… But seriously, I don’t like the idea, its still bribing and corrupting someone, sooner or later you will be caughtand the full hands of the law will be coming over to get you.

  • Kakmakr
    1 month ago Kakmakr

    It is, if you want the transaction recorded on the Blockchain and later to be used as evidence against you. You may use mixer services, but the authorities are hunting down these services and you might end up explaining these actions in a court of law. The mixer service in my signature says no records or logs are kept of all transactions going through their service, but bribery are wrong and should not be done, so I would advise against it.

  • topesis
    1 month ago topesis

    Bribing is a bad idea itself, the act of bribing can put you in more mess than you expect, just make sure you always do the right thing and have no need to bribe anyone

  • ASHLIUSZ
    1 month ago ASHLIUSZ

    Bitcoin helps in lots of illegal things to be done in a perfect manner without the support from third parties. This makes bitcoin ruin its future when more people use it for bad than for good needs. Such thinking to use bitcoin into bribe needs to be eliminated. As of now people prefer it much as a investment than a currency.

  • Juggy777
    1 month ago Juggy777

    Quote from: hl5460 on February 09, 2017, 01:58:43 AM
    With 1000 dollars each, it seems that bribing with bitcoin would be a good idea.  One USB stick will do the job with no third party required.

    Why would you want to do such a thing in the first place until you are in some deep trouble. I would suggest you not to do this kind of stuff cause it would bring Bitcoin a bad name and if you are caught this would help the agencies who are already pissed with Bitcoin. I really don’t appreciate people using Bitcoin for this kind of activities, why do you all want Bitcoin to have a bad name. Please it’s a kind request refrain from this and don’t do this or give other people such ideas. I am sure many newbies will be tempted to use this and then they mess up and bam the entire community could be effected.

  • deadsilent
    1 month ago deadsilent

    What? Bribing is not a good idea. But that depends where you use the bribe. But if its for illegal, hell no! I will never do that just to change someones judgment or just to get someone he wants. Either if its money or bitcon. Bribing is still bad on everyones jurisdictions. Its a crime.

  • philiveyjr
    1 month ago philiveyjr

    Bribing of any currency is not an ethical thing to do. You can tip them in BTC if they do the job well if you really want to spend your money. Bribing is morally wrong and should never be encouraged. The work should be done based on merit and not because of extra cash being sent.

  • maydna
    1 month ago maydna

    Quote from: Kakmakr on February 09, 2017, 06:01:24 AM
    It is, if you want the transaction recorded on the Blockchain and later to be used as evidence against you. You may use mixer services, but the authorities are hunting down these services and you might end up explaining these actions in a court of law. The mixer service in my signature says no records or logs are kept of all transactions going through their service, but bribery are wrong and should not be done, so I would advise against it.

    using mixer service is another good option for us to hidden or mix the amount of bitcoin that we have or the transaction that we receive in our wallet. i don’t think that bribing would help you for your purpose and i think its against with the law, we need to thinking that we don’t have to make illegal activity because if there is many people doing this, then it will makes bitcoin got bad name and bitcoin will not be use by most people. so i think its better for us to stay away for any of illegal activity or making illegal transaction.

  • Jet Cash
    1 month ago Jet Cash

    Bribery is the paying of money to influence the actions of a public official. Do many public officials use Bitcoin?

  • Immakillya
    1 month ago Immakillya

    Thats a tempting amount. But we all know bribing is a bad behavior. Bribing just to influence someone sounds pathetic to me. Thats means, you’re really desperate to get something thats impossible to get. Maybe just for reward. You can give someone a reward. Bitcoin is a good reward. Not everyone can accept your bribe. Maybe it will just put you to worst situation.

  • Dpkhanna
    1 month ago Dpkhanna

    Absolutely not haha, stay safe bud

  • Slark
    1 month ago Slark

    This is not good idea from the moral standpoint. We shouldn’t be doing this with any form of currency. Are you asking if doing it with Bitcoin is doable and better than doing it with paper cash? Probably not.The only advantage of giving someone USB with BTC over envelope full of banknotes, is that you can encrypt that file with private keys, so in case you get caught no one will get your BTC.(As long as you have the copy somewhere).

  • Xester
    1 month ago Xester

    If bribing is not illegal and immoral then you have probably the best idea a person could ever have. But since bribery is not good in nature then even if you use your bitcoin in bribing the result would be not good. Just use your bitcoin in legal and good purposes and dont waste your bitcoin in doing illegal activities. Bad actions has always its bad karma, please bear it in mind.

  • NorrisK
    1 month ago NorrisK

    I don’t get why you would even use a USB stick for this.. You would still have to physically hand it over.. imo there are much smarter ways to do it. You can avoid a transaction on the blockchain by simply mailing a printed cold wallet without return address. No trace on the chain of that.. Anyway, ofcourse, don’t bribe, it is not a good thing to do.

  • hl5460
    1 month ago hl5460

    Quote from: HabBear on February 09, 2017, 05:25:13 AM
    No, but only because bribery is a bad idea, in any currency.Purely speaking of the transaction type, yes. Bitcoin allows two parties to conduct a transaction of any size without having to be near each other. So the trauma caused by the bribe can be happening away from the person asking for the bribe. Further, once the briber receives the bribe they can make it disappear in a nearly infinite number of ways so that it can’t be retrieved. The bribe can’t be found.All anyone has to do is use a bitmixer and the coins become clean of any connection to the bribe.

    Bribery will always be there no matter you like it or not.Check out how the officials stashed their money:Quote
    An official in the Chongqing Department of Transportation, stashed 9.39 million RMB cash in 8 sealed cardboard boxes. A broken water pipe in the toilet, where the cash were stored, leaked the secret.Yao Jianhua, former deputy head of Tianjin Tanggu District, was reported. The prosecutor found gold, RMD and USD and certificate of bank deposits from fish stomach, screen door, waste paper box and flue sealed with cement in his house.An official in Guizhou Province hid deposit certtificate in a special belt. Then the belt was stolen along with trousers. The case was exposed after the thief threw away the trousers.In addition to corruption, excessive cash also raises other concerns related to cash. Such as drug trafficking, money laundering, terrorism and other illegal activities, where the regulatory force found themselves blind.
    http://news.8btc.com/unspoken-need-of-central-bank-to-curb-corruption-with-digital-currency

  • hl5460
    1 month ago hl5460

    Quote from: NorrisK on February 09, 2017, 08:12:53 AM
    I don’t get why you would even use a USB stick for this.. You would still have to physically hand it over.. imo there are much smarter ways to do it. You can avoid a transaction on the blockchain by simply mailing a printed cold wallet without return address. No trace on the chain of that.. Anyway, ofcourse, don’t bribe, it is not a good thing to do.

    Sometimes bribers is the only way to get things done in China.

  • Reid
    1 month ago Reid

    Who will you bribe? Of course it is a good idea because there will be no trace but the problem would be is the one your bribing it to knows what you are sending him? Or are you going to put instructions in an evelope with the USB in there? He might think it is just virus or something that could hack his personal computer.

  • 8btccom
    1 month ago 8btccom

    I am not sure if the PBOC’s move is intentional. But from a long term perspective, the community demand and supply determines the balance.

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