China provided information on national cryptocurrency

Commercial banks and other financial institutions will compete with each other for the opportunity toproviding the best tools basedChina’s national digital currency, when it will be launched, said Mu Changchun, head of the payment and settlement solutions department of the central bank. About this writes Reuters.

During a speech on Wednesday at a forum in Hong Kong, Mu said that initially the digital currency will be distributed among financial institutions that will work with the general public.

“During the research and emission period, ourthe approach will resemble horse racing. The leader, the most effective who can provide the best service, will take over the entire market and be able to survive in the future. ”- he declared.

Mu also emphasized that the People’s Bank of China would be neutral with all the technologies offered, but the leader’s technology is likely to be adopted by other players.

Because the digital currency is intended forreplacing existing coins and banknotes, its holders will not receive interest payments, which, in turn, will avoid additional problems with inflation, the CB representative said.

He confirmed that Chinese regulatorsThey are still worried about the creation of the Libra stablecoin, noting that such tools threaten the country's currency sovereignty. Acceptance of such instruments by Chinese entities will violate the rules for exchanging foreign currencies, he warned.

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