China continues to work to create a national digital currency

China continues to work to create a national digital currency

The head of the government-funded center for the study of blockchain said that China is still in the process of developing a government digital currency.

According to Shanghai Securities News, the head of the research center of the China Banknote Blockchain Zhang Yifeng said that the research and development of digital Fiat currency in China continues, adding that the expected date of launch is still unknown.

The centre was formed on the basis of the Banknote China Credit Card Industry Development, which is in turn owned by a state Corporation China Banknote Printing and Minting Corporation, which is directly subordinate to the people’s Bank of China (PBoC).

Earlier, former Governor of the PBoC Zhou Syaochuan, at a press conference in March stated that the advent of digital currency supported by a Central Bank “inevitable,” although he did not rule out the possibility of creating such a digital currency based on the technology of distributed registries.

Last week Chinese media reported that the Central Bank has already launched a digital currency. But at the summit on financial technology in Hangzhou, Zhang called the information rumors untrue.

In addition, Zhang said that digital currency will not replace the existing mechanism of cash immediately. Rather FIATA and digital currency will be used in parallel.

Zhang further stated that intrinsic value is an essential instrument of the payment system and digital currency of the state must necessarily inherit it. Bitcoin and ethereum have no right to be called digital currency, in his opinion, given that their role as value of assets greatly exceeded their role as means of payment.

Let's Disqus