China's central bank is in the process of considering the idea of producing a digital currency. But, judging by the statements of banking representatives, this does not mean at all that it will be created using blockchain technologies.
Yicai in one of its articles says that the vice-governor of the People's Bank of China (PBOC) Fan Yifei announced the bank's position on digital currency.
He said that the management of electronic currency will be strictly controlled, which will significantly distinguish it from cryptocurrency and tokens that are issued decentralized. At the same time, Ifei added that the bank’s digital currency will be under his personal responsibility, because the only difference is that the currency from the physical form of cash will simply change to digital. This is how they want to emphasize the importance of the bank itself as an issuer in issuing a digital asset. Using this technology, they are going to strengthen the Chinese yuan and reduce the demand for cryptocurrency.
As already mentioned, blockchain technology will not be used to create currency. All transactions that will be carried out with its help will be tracked by the Central Bank in order to control and prevent illegal financial activity if it occurs.
Yao Qian, director of the bank's cryptocurrency research laboratory, confirmed the words of the vice governor. He stated that the ideology of a decentralized blockchain should not limit the process of issuing digital currency.
Ifey added that the National Bank is very wary of smart contracts and their introduction in order to make the process automated. The Vice Governor drew attention to the fact that, although this asset will replace the yuan, it must still be subject to the same laws that control the national fiat.
Currently, Chinese legislation provides for the use of the yuan only to optimize pricing, circulation, storage and payment, which means the same rules will apply to the national digital currency.
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