China’s central bank, the People’s Bank of China (PBOC), is almost ready to release its new virtual currency after years of research, according to Reuters.
The Deputy Director of the PBOC’s payment department, Mu Changchun, said the release will come soon but did not provide a specific timeline. This new Chinese digital currency would support the circulation and internationalization of the yuan, according to Bloomberg. (RELATED: Lawmakers Question Libra Amid Facebook Privacy Concerns)
China’s central bank says it’s close to releasing its own digital currency https://t.co/OlO2ELSkf2
— CNBC (@CNBC) August 12, 2019
The rollout of this digital currency will be through a “two-tier system” where China’s central bank and commercial banks will both be the legitimate issuers. The digital currency will rely on blockchain technology but will also give Beijing more control over its financial system.
Global bankers are paying attention on PBOC’s pending issuance of the currency, especially since Facebook is working on launching its own currency called Libra, and wondering what the introduction of these digital currencies means for the global financial system. (RELATED:‘Come On, Man’: Biden Dismisses China Threat To The US)
“It is without doubt that with the announcement of Libra, governments, regulators and central banks around the world have had to expedite their plans and approach to digital assets,” said executive director at BC Technology Group Ltd. Dave Chapman.
In a statement released in early August 2019, The PBOC said it will “expedite the research of China’s legal digital tender” by keeping tabs on the financial trends of the currency and monitoring its global activity.