Deputy Director of PBoC – Digital Yuan Will Not Be Similar To Bitcoin or Stablecoins
Mu Changchun, deputy director of the People’s Bank of China (PBoC), stated that the digital yuan will not be similar to either Bitcoin (BTC) or stablecoins.
Chinese media outlet South China Morning Post stated that the chief of the virtual currency research institute at the PBoC stated that China’s electronic currency will not offer any room for speculation on its value.
Furthermore, it will not be backed by any currency basket.
Mu elaborated as follows:
“The currency is not for speculation. It is different to bitcoin or stable tokens, which can be used for speculation or require the support of a basket of currencies.”
In the recent past, Mu has pointed out that China’s latest national virtual currency would function as a two-level mechanism, with the PBoC and commercial banks permitted to take up the top and bottom layer, respectively, in the centralized platform.
Last month, the People’s Bank pointed out that it aims to conduct a 2 year trial with limitations on huge cash dealings, and will be deployed in stages in Hebei Province, Shenzhen City and Zhejiang Province.
Also in November, Mu clarified that China is not trying to make cash obsolete through the introduction of digital currency. On the contrary, Beijing wants to make the latest currency to pair up well with the fiat yuan.
In the meantime, China’s central bank is forging ahead on its plans to roll out crypto token to contest the US dollar as it is aiming to carry out the initial real-world trial of its central bank digital currency before the end of this year. Under the vigilant eye of the PBoC, four major banks and key economic partakers like China Telecom will supposedly trial digital currency payments.