June 18, 2024

People's Bank of China: “Digital renminbi holders will not receive interest”

The head of the Digital Currency Research Institute of the People's Bank of China (PBOC), Mu Changchun, revealedmore information on the upcoming digital renminbi.

According to Reuters, at a forum in Hong Kong inMu said Wednesday that China's digital currency is intended to replace existing coins and paper money and its holders cannot expect to pay interest. Therefore, a digital currency will have no implications for inflation or monetary policy.

The official said the PBOC will first issue the digital currency to commercial banks and other institutions, which will then distribute it to the public.

"During the research period and phaserelease we will use the following approach. The largest institutions will take control of the entire market, meaning those most effective organizations that can provide the best service to the public will be able to survive in the future,” — Mu said.

In August, Mu Changchun claimed that digital currencyThe People’s Bank of China is ready to launch, and in September noted that it would be similar in architecture to Facebook's Libra stablecoin. Recall also that recently the Institute of Digital Currencies of the People’s Bank of China and Huawei entered into a partnership agreement to conduct research in the field of financial technology.