PBOC Official: China’s Digital Yuan Won’t Be a Speculative Currency Like Bitcoin

PBOC Official: China’s Digital Yuan Won’t Be a Speculative Currency Like Bitcoin

According to recent statements by People’s Bank of China (PBOC) official Mu Changchun, the country’s digital yuan is ready for trials. The central bank digital currency (CBDC) will decidedly not be a speculative asset like bitcoin or stablecoins, and will not need a currency basket for backing, Changchun affirmed. Reactions to the announcement are varied, with some Chinese traders disappointed, reportedly saying they will find other means to speculate.

Also Read: China’s Inflation Hits a Record 4.5% as Beijing Prepares to Test Digital Yuan

Not Bitcoin, Not Speculative

Head of the PBOC Digital Currency Research Institute, Changchun stated Saturday at a financial meeting in Beijing that “The digital yuan is used to spend, not for speculation. It does not have the characteristics of bitcoin speculation, nor does it require a basket of assets to support its value like stablecoins,” reported Shanghai Securities News.

The media outlet details that Changchun affirmed the digital yuan would not be a crypto asset like bitcoin or a type of stablecoin as being proposed by Libra.

PBOC Official: China’s Digital Yuan Won’t Be a Speculative Currency Like Bitcoin

Preparations ‘Basically Completed’

The report quotes Changchun as saying:

At present, the digital currency DCEP [Digital Currency Electronic Payment project] of the People’s Bank of China has basically completed the top-level design, standard formulation, functional research and development, joint debugging and testing.

The next step is to begin rolling out pilot programs for the currency, though no specific timeframe has been given. When this is complete, the projected plan is to issue the currency to commercial banks which would then disperse the CBDC to the public.

Public Reaction to Changchun’s Statement

Reactions to the news have been varied, according to reports. One user of social media platform Weibo reportedly remarked “If you don’t allow me to speculate on the digital form of the yuan, I’ll speculate on other things, like foreign exchange.” Another on Sina.com is quoted as saying “So there will be no fun in it.”

Reception outside of regional media hasn’t been as dynamic, possibly because few are surprised by the news, given the Chinese government’s established track record of standing in opposition to speculative practices when it comes to crypto.

Despite bullish statements in November from President Xi Jinping, officials have made it clear that the Chinese government’s push is for the development of a regulated blockchain industry and not for ICOs or other such speculative practices. Banks may not deal in decentralized cryptocurrencies such as bitcoin, nor can exchanges directly facilitate trading thereof.

What do you think about Changchun’s statements? Let us know in the comments section below.

Image credits: Shutterstock, Shan_shan, fair use.

Want to create your own secure cold storage paper wallet? Check our tools section. You can also enjoy the easiest way to buy Bitcoin online with us. Download your free Bitcoin wallet and head to our Purchase Bitcoin page where you can buy BCH and BTC securely.

Tags in this story

Bitcoin, CBDC, China, DCEP, Digital Yuan, Libra, Mu Changchun, PBOC, Regulation, Stablecoin

Related

image

Graham Smith

Graham Smith is an American expat living in Japan, and the founder of Voluntary Japan—an initiative dedicated to spreading the philosophies of unschooling, individual self-ownership, and economic freedom in the land of the rising sun.

Please enable JavaScript to view the comments powered by Disqus.
Original author: Graham Smith
Lawmakers Want Answers From IRS, Citing Major Issu...
Only 375 Days Left for McAfee’s $1M Bitcoin Price ...
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Thursday, 03 December 2020
If you'd like to register, please fill in the username, password and name fields.

By accepting you will be accessing a service provided by a third-party external to https://www.flipmycrypt.com/