Central Bank of China deputy director Mr. Mu Changchun announces in his recent media interaction that Digital Yuan will be different from Bitcoin and Stablecoins. According to the South China Morning Post, China’s national digital currency would be a digital form of the Yuan. The head of the digital currency research institute at the People’s Bank of China (PBoC) said that it will have no room to speculate on its value. It also reveals that it will not need the backing of a basket of currencies.
Mu Changchun explained that “The national digital currency isn’t for speculation. It’s different from bitcoin or stable tokens, which can be used for speculation. And, require the support of a basket of currencies.”
According to an earlier report published at Cointelegrah, Mu Changchun recently indicated that China’s new national digital currency will operate in a two-tier system. PBoC will always be the first in the leaderboard. However, commercial banks will be in the second tier of the centralized system. The Chinese officials from PBoC said.
Central Bank of China Starts Trials to Restrict Large Cash Transactions
In November, the Central Bank of China or People’s Bank of China announced that it intends to carry out a pilot with restrictions on large-scale transactions. It will last for two years consecutively and will be implemented in phases. The Chinese cities to welcome this first are Hebei Province, Zhejiang Province, and Shenzhen City.
Mu Changchun made it clear in the same month that China isn’t launching a war on cash by introducing its own national digital currency. But, Beijing intends for the new currency to complement the paper yuan.
Real-World Pilot of China’s National Digital Yuan
Meanwhile, the Central Bank of China is going ahead with full speed towards launching its national digital currency. This is the way China plans to challenge the United States Dollar. China plans to conduct the first real-world test of its central bank digital currency before the end of 2019. Therefore, reports came that it recently test digital currency in two cities successfully.
Four major banks and prominent economic participants like China Telecom will reportedly test China’s national digital currency payments under the watchful eye of the People’s Bank of China.