According to a senior official the People’s Bank of China is “close” to issuing its own cryptocurrency.
The researchers of the bank have been working intensively since last year to develop the new system, and the cryptocurrency is very close to be officially start, Mu Changchun, deputy director of the PBOC’s payments department, said in the China Finance 40 Forum.
China’s PBOC Considers Plan to Replace Cash and Sideline Bitcoin
Mu also said that the PBOC’s intention about the digital currency is to replace M0, or cash in circulation, rather than M2, which would generate credit and impact monetary policy. The digital currency would also support the yuan’s circulation and internationalization.
Sun Tianqi, an official from China’s State Administration of Foreign Exchange, said at the same forum:
“Libra must be seen as a foreign currency and be put under China’s framework of forex management”.
Unlike decentralized blockchain-based offerings, the PBOC’s currency is intended to give Beijing more control over its financial system.