Digital Renminbi Prospects for China
By touching upon the topic of the new Chinese digital currency, it is worth noting immediately that it will have significant differences compared to other products of the cryptocurrency market. It was such information, on Saturday, that the head of the branch of the digital currency research center of the People’s Bank of China, Changchun Mu, tried to convey. Such words were spoken at the Academic Annual Meeting of the China Finance Association and the Annual Meeting of the China Financial Forum in Beijing.
He also added some information about the security of China’s new fiat digital currency. The digital yuan, by its nature, a priori does not have speculative characteristics, which significantly raises the level of cryptocurrency security. But, despite this, the moment remains unclear with the linking of the value of the digital renminbi to the traditional, or rather the existence of any alternative options for linking their value to each other.
So what, after all, is the primary mission of the digital renminbi? A former employee of the National Bank of China made a reservation that the use of digital cryptocurrency can simplify and improve the process of paying retail payments, as well as help in creating a new tool in the field of the international payment system.
It is worth noting that a lot of people froze in the expectation that the new Chinese digital yuan will be the first major cryptocurrency to be issued by the Central Bank (CBDC). In turn, Mu commented that the developers and engineers of PBOC are already nearing the completion of all technical work related to the functionality, standards of work, development, and testing of the new cryptocurrency.
It can be assumed that very soon, the National Bank of China will be able to present and gradually introduce a digital yuan for citizens of its country, with the participation of partners such as Ant Financial with the support of Tencent and Alibaba.
But, despite such a positive first impression of the future national cryptocurrency, some critics nevertheless expressed their concern that the NBC policy might allow the option of tracking Chinese citizens using the new renminbi.
Back in November, the NBK announced that the digital yuan is still under testing after the website announced that it would be launched on November 20. Bank officials previously ruled out any release date until December 10.