June 19, 2024

China's national cryptocurrency is ready for test trials

China's national cryptocurrency is ready for test trials

Mu Changchun, head of the payment and settlement solutions division of the People's Bank of China, spoke at thefinancial meeting in Beijing, where he said thatChina's national digital currency is ready for pilot testing. At the same time, he warned about the inadmissibility of its classification as a speculative asset, to the category of which, according to him, Bitcoin belongs.

“Digital yuan is used as paymentfunds, not for speculation. It does not have the speculative characteristics of bitcoin and does not require a basket of assets to maintain its value, like stablecoins. ”- said Mu.

The representative of the Central Bank also said that by nowAt the time, they "essentially completed the main part of the development of a digital currency electronic payment system (DCEP), the preparation of standard formulations, functional studies and joint tests."

The next step in the project will be the launch of pilotprograms. Mu did not give indicative dates. This stage will be the last before the currency is credited to the accounts of commercial banks, which will deal with its distribution among the general public.

The public reaction to these statements was mixed:

“If you do not let me speculate on the digital renminbi, I will speculate on other things, such as foreign currencies”, - wrote one of Weibo users.

Mu previously said that the Central Bank of China does not set as its goal surveillance of society while developing a national digital currency.

“We know that representatives of a widethe public would like to maintain the anonymity that they use when dealing with banknotes and coins. We will provide these people with transaction anonymity. But at the same time, we will maintain a balance between “controlled anonymity” and combating money laundering, terrorist financing, tax issues, online gambling and other criminal activities in electronic form ”“He said.