China Daily: The digital currency of the People’s Bank …

China Daily: The digital currency of the People’s Bank …

China Daily: People’s Bank of China Digital Currency May Launch Before Libra

The digital currency of the People’s Bank of China may see the light of day before the Libra cryptocurrency from Facebook, the Chinese political newspaper China Daily writes, citing experts close to the regulator..

On August 10, it became known that the Chinese digital currency is almost ready to launch after several years in development. Experts argue that the Libra announcement could have influenced the plans of the People’s Bank of China and forced it to consider new models for the implementation of the instrument, in which a more important role will be given to non-governmental institutions..

“Prior to the official launch of the Chinese digital currency, further testing is required, which will be carried out taking into account Libra,” said Yang Dong, director of the Center for Financial Technology and Cybersecurity Research at the People’s University of China..

Future trials should focus on non-governmental and cross-border scenarios. Many participants, including private and government-focused companies, can join the central bank’s process, Don says. However, he refused to name specific companies that may be involved in testing..

Shao Fujun, chairman of the Chinese payment system UnionPay and a former official at the People’s Bank of China, said various formats and plans to launch a digital currency are currently being considered. “It will have many positive consequences, including in the context of tracking cash flows in economic activity and supporting monetary policies,” he said..

China Daily: The digital currency of the People's Bank ...

At the same time, Fujun noted that the digital currency may face a number of difficulties associated with international cooperation and the establishment of the exchange rate..

“We are now participating in a kind of horse race where several authorized institutions take different technical approaches in developing digital currency and electronic payment system. The winner will be the one whose approach is the best and is accepted by society and the market. Thus, this is a process of market competition, ”said Mu Changchun, Deputy Director of the Payment and Settlement Solutions Division of the People’s Bank of China, adding that digital currency should be controlled by the central bank anyway..

China Daily: Digital currency of the People's Bank ...
China Daily: Digital currency of the People's Bank ...

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