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China’s Digital Yuan To Implement Payments And Retail System, Says Ex-PBoC Head

China’s digital currency to approve the international payment and domestic retail systems according to a former senior official at the central bank of China.

On Nov. 26 local publication, Caixin reported that there are two types of implementation outlined of the central bank digital currency (CBDC).

  1. The first is the electronic payment-oriented domestic retail system

  2. The second is the international remittances for settlements between financial institutions.

“China will continue along the established path for its own digital yuan”

The outline was revealed at the 2019 Caixin Hengqin Forum by Zhou Xiaochuan, the president of the Chinese Finance Association and the former governor of the People’s Bank of China (PBoC).

Zhou is one of the most influential financial experts and the longest-serving head at the central bank of China. Zhou indicated that China will continue along the established path for its own digital yuan, dedicated to domestic retail system and payment.

Zhou emphasized on the risks associated with the CBDCs while maintaining that a fiat currency serves as a “symbol of national sovereignty. He added that the central banks of the “super sovereign power,” should be very careful on the direction as one wrong choice could lead to a credit crisis.

PBoC Research Continues While Regulating Against Cryptos

China was reportedly to complete its central bank digital currency by August. However, the PBoC clarified that it has no specific date for the launch of its digital currency while claiming it needs time to research, test, evaluate and prevent risks.

However, in October, a Chinese economic think tank executive at the Center for International Economic Exchanges (CCIEE) said that China’s central bank will be the first to launch a digital currency successfully.

Meanwhile, China’s technology capital of Shenzhen issued a warning against illegal activities related to cryptocurrencies.

Recently, The People’s Bank of China (PBoC) said that it will pilot a restriction on large-scale cash transactions in three different regions across the country. PBoC says that large scale cash transactions facilitate illegal criminal activities such as corruption, tax evasion, and money laundering. 

Source: Caixin| Cointelegraph

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