January 31, 2023

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

Mu Changchun, Head of the Institute for Digital Currency Research at the People's Bank of China (NBK) more information on the upcoming digital renminbi.

According to Reuters, at a forum in Hong Kong inMu said on Wednesday that China’s digital currency is intended to replace existing coins and paper money, and its owners cannot rely on interest payments. Therefore, a digital currency will not have effects on inflation or monetary policy.

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

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

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.