People's Bank: digital yuan will be accepted throughout China

The Deputy Governor of the People's Bank of China (PBOC) published the guidelines for digital circulation.yuan in the country.

NBK continues experimental research anddevelopments in the field of digital yuan. Digital Yuan – It is a legal digital currency issued by the Central Bank of China. The digital yuan is said to “facilitate interbank transfers, have legal indemnity, and support controlled anonymity.”

The central bank digital currency (CBDC) is intended to replace some of the country's paper banknotes to improve the efficiency of monetary circulation and improve consumer welfare.

The digital yuan is recognized as a legal paymentmeans on the territory of the PRC and must be accepted in all public and private financial companies. The national digital currency must comply with all laws of the circulation of cash, including the law on combating money laundering and terrorist financing.

In addition, Deputy Governor of the Central Bank Fan Yifei highlighted the negative impact of the private currency:

In recent years, crypto assets – bitcoin andstable coins – tried to perform currency functions. In response to this situation, the country needs to use new technologies to digitize M0 and provide a universal base currency to develop the digital economy. 

Yifei is confident that later, legal digital payment will gradually completely replace banknotes.

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