The Deputy Director of The People's Bank of China (PBoC), the highest financial institution in the country, Mu Changchun has revealed that the digital Yuan to be launched by the bank will be completely different from Bitcoin and other stable coins. The recent report from one of the leading media outlets in the country, South China Morning Post, further reveals that the digital Yuan will be a form of the traditional Yuan currency with no predictions and speculative actions. Additionally, the report also states that the digital Yuan will have no requirement to be backed by other coins.
Mu Changchun hinted that the digital Yuan would operate on what he referred to as a "two-tier system" where the Central Bank will be at the top and commercial banks below it. This information comes hot on the heels of the announcement that the PBoC would carry out a pilot that will restrict large cash transactions as reported on the Dragon Blog.
Dragon co-founder Paul Moynan, said, ‘Mu Changchun has made it clear that the launch of the digital Yuan will in no way cause conflict between cash and digital currencies with the new digital currency set to complement the paper Yuan. The digital Yuan is set to have a global influence and will compete with the US dollar with the phenomenal rate of development of Blockchain technology sure to be a crucial component for both countries.
The endorsement by the Deputy Director is a clear statement of intent that the government is seeking to beat rival countries who are also considering implementing their own digital currencies and 2020 is sure to be a fascinating and productive year for Blockchain innovation coming out of China - and we'll keep you fully up to date with the latest news right here on the Dragon Blog.