NBK: China's digital yuan will not be speculative currency

China's central bank official in charge of the new sovereign digital currency has said it will notopen to speculation, like other cryptocurrencies, and will be designed for payments.

Mu Changchun, head of the People's Bank of China's Digital Currency Research Institute, said on Saturday that the currency will Traders will not be able to speculate on its value, and it will not need the backing of a basket of assets.He said: 

The digital currency of the central bank (CBDC) was not created for speculation. The digital yuan is fundamentally different from bitcoin or stable tokens.

Changchun said that the first phase of the cryptocurrency project has been completed, and the bank has begun preparing pilot programs for the digital yuan.However, the exact date of the currency's release is still unknown.Note that the Chinese government has repeatedly expressed a negative attitude towards the speculative and volatile digital currency market.

Despite statements by President Xi Jinping,officials have made it clear that the Chinese government is pushing for the development of a regulated blockchain industry, not the development of ICOs or other similar speculative practices. Banks cannot deal with decentralized cryptocurrencies, and exchanges cannot directly facilitate their trading.

Some Chinese traders were disappointed with the news, saying that they would find other ways to speculate with cryptocurrency.