A top official at the apex bank of China, People’s Bank of China (PBoC), has hinted that the country is close to launching its digital currency.
As reported on Bloomberg today, the deputy director of the payments unit of the PBoC, Mu Changchun made this known at the China Finance 40 Forum that was held on Saturday
Since last year, the PBoC came up with a group of researchers to establish a prototype that would aid the creation of the digital Yuan. The move which seems close to a definite end, as Mu stated that the PBoC would soon be launching its Central Bank Digital Currency (CBDC).
“The bank’s researchers have been working intensively since last year to develop systems, and the cryptocurrency is close to being out,” Mu said at the event.
Mu stated that when the PBoC’s digital currency is officially launched, it would be used as a substitute for Yuan notes and coin via an app on smartphones. The CBDC would also facilitate the efficient circulation of the Yuan currency in the country and other parts of the world.
Additionally, patents under the PBoC stated that the CBDC would enable businesses and citizens in China to make an exchange between their Yuan and the digital currency. It will also help the PBoC to track transactions easily.
Facebook Libra Raises Global Concern
Facebook’s push to develop its cryptocurrency as announced in June has raised concerns in top financial institutions globally, including the PBoC.
According to reports, the PBoC warned at the time that the Libra cryptocurrency poses a threat to global payment systems and fiat currencies. The Chinese apex bank further stated that the Libra cryptocurrency should be put under the watch of central banks, to prevent any potential foreign exchange risk the crypto might cause.
However, the Libra project announcement contributed to the PBoC’s imminent launch of its CBDC.