NBK: “national cryptocurrency will not cause inflation”

People's Bank of China (PBOC) digital currency tests have attracted huge attention, so the bank has clarifiedsome aspects of the work of crypto yuan.

Yesterday, the NSC representative said that testingnational digital currency will be held in the cities of Shenzhen, Suzhou, the Xiongang region and the area where the Winter Olympic Games will be held. At the same time, the digital yuan has not yet been released to the general public:

“Now the closed test of the digital renminbi, andit will not affect business transactions or registered organizations. It will also not affect RMB issuance, circulation, financial markets or an economy outside the testing program. ”

To eliminate the influence of testingdigital currency at the rate of the yuan, commercial organizations purchasing digital yuan must transfer the same amount in ordinary yuan to a special account at the PBOC. Only after this the NBK will issue the required amount of state cryptocurrency, which will be credited to the buyer’s wallet. Of course, for the buyer this whole procedure will go quickly and unnoticed.

Interestingly, the NBK suggests the possibility of transferring the digital renminbi even without the Internet if the national cryptocurrency network is unavailable.

“In case of network unavailability, if two mobilephones with installed applications of the national cryptocurrency wallet can interact (for example, through NFC), the payment in digital yuan will be made, ”the bank said in a statement.

National cryptocurrency is not tied tospecific bank or account, but secured by local currency. According to the representative of the NBK, there is no significant difference between the fiat and the digital yuan, and compared to bitcoin, the digital yuan “is stable”.

It was recently reported that officials in the city of Suzhou will receive payments based on travel expenses in the national cryptocurrency.

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