The digital currency of the People’s Bank of China can see the light earlier than the cryptocurrency Libra from Facebook , writes the Chinese political newspaper China Daily , citing experts close to the regulator.
On August 11, it became known that the Chinese digital currency is almost ready for launch after several years in development. Experts argue that the announcement of Libra could affect the plans of the People's Bank of China and force it to consider new models for implementing the tool, in which non-governmental institutions will play a more important role.
“Further testing is required before the official launch of Chinese digital currency, which will be carried out taking into account Libra ,” said Yang Dong, director of the Center for Financial Technology and Cybersecurity Research at People’s University of China.
Future trials should focus on non-governmental and cross-border scenarios. Many participants, including private and state-oriented companies, can join the central bank process, says Don. However, he refused to name specific companies that may be involved in testing.
Chairman of the Chinese UnionPay payment system and former official of the People’s Bank of China, Shao Fujun, said that various formats and plans for launching a digital currency are being considered.
“It will have many positive consequences, including in the context of tracking cash flows in economic activity and supporting monetary policies ,” he said.
At the same time, Fujun noted that the digital currency may face a number of difficulties associated with international cooperation and the establishment of the exchange rate.
“Now we are participating in a kind of horse racing, where several authorized institutions adhere to different technical approaches in the development of digital currency and electronic payment system. The winner will be the one whose approach is the best and will be accepted by society and the market. Thus, this is a process of market competition , ”said Mu Changchun, deputy director of the payment and settlement solutions department of the People’s Bank of China, adding that the digital currency should be controlled by the central bank in any case.
Publication date 08/21/2019
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