And it is pretty likely they do so. In my opinion China is issuing their own e-currency pretty soon, so they don't really want any competitors. We are living in very interesting times.
That would make things very interesting.
Why would China need an e-currency? If you're in China you can already buy things online using the good-old yuan. What value would another currency add?
Completely control on the people spending it. Government will be able to put taxes on the people and no one will be able to hide their earnings. Also I suppose it would be much cheaper than circulating paper money.