Outside in is preparing an open letter to the government of the PRC, recommending the creation of a Bitcoin clone. The state-level incentive for such an initiative would be to refashion the global financial order in preparation for the ending of US Dollar status as the world reserve currency. It does not seem difficult to present this as a matter of clear Chinese national interest, with definite spin-off benefits to the country’s political and economic elites, its ordinary savers, and supporters of economic freedom worldwide.
Sinocoin (to use its English name), would be released by the PBoC, and then — like BitCoin — be irretrievably autonomous. The Sinocoin algorithm would be a perfect Bitcoin clone, assuming (realistically) that the PRC government would not be inclined to upgrade it with strengthened user anonymity patches. However, PBoC reserves could be used, in accordance with a publicly announced policy, to sustain a floor valuation for the currency in its initial stages. Limited controls on RMB / Sinocoin exchange might provide a longer range mechanism for the suppression of Sinocoin volatility.
Sinocoin would be a complementary initiative to Bitcoin, designed to avoid the disruptive effects that large-scale Chinese forex interventions would have on the latter currency. Bitcoin / Sinocoin exchange rates would provide a valuable index of Chinese financial integration into the emerging (Modernity 2.0) global economy. Parity is to be considered the ultimate natural equilibrium (with Sinocoin outperforming Bitcoin during its early decades).
If anybody has suggestions to make about the technical, economic, or political implications of such a development, they can be discussed here, and carefully considered prior to drafting the proposal. Unless specifically requested, contributor information will not be willingly passed on to either Chinese or US financial authorities or intelligence services.