China’s New Digital Currency Chief Reveals New Features

Asia Blockchain Review
September 18, 2019
China’s New Digital Currency Chief Reveals New Features

Changchun Mu, the new chief of China’s Digital Currency Research Institute and former deputy director of the payments and settlement division at the People’s Bank of China (PBOC), has revealed some of the features developed by the central bank.

Digital Currency with Chinese Characteristics

According to Coindesk, Mu has released the features of the PBOC’s digital currency and stated that it would serve as an electronic payment tool with “value characteristics.”

“Its functional attributes are exactly the same as paper money, but it is just a digital form,” he said.

Mu also provided the technical aspects of the digital currency, comparing it side-by-side with Facebook’s Libra. According to Mu, the digital yuan can be utilized for transactions between users without the need for an account or an internet connection. If the users’ smartphones have wallets installed, transactions can be made by putting the two devices close together and enabling the near-field communication (NFC) protocol set.

“Even Libra can’t do this,” Mu said.

Planning Ahead to Protect Monetary Sovereignty

Mu added that China’s digital currency will be distributed through commercial banks in the same way as fiat currency. Banks are required to open accounts with the PBoC, purchase the currency at 100 percent value, and offer them to users via digital wallets that have been registered with financial institutions, commercial organizations or banks.

Additionally, Mu revealed that the PBoC has been developing the digital yuan as a way of “planning ahead” in a bid to protect monetary sovereignty.

In many ways, Facebook’s Libra may already be a few steps behind China regarding the launch of a digital currency.

Source: https://www.coindesk.com


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Cyber Attacks In India Surge In Post Border Face Off
    The clashes between Indian and Chinese troops at Galwan valley that took the lives of soldiers from ...

    August 8, 2020

    Silver Technological Bullet For India’s Economy
    If India is to rise from the ashes, she would have to harness the capitalist spirit through being se...

    August 8, 2020

    Improving Food Traceability Using IoT & Blockchain
    In recent times, we have seen use cases of Blockchain & IoT being used together to solve the problem...

    August 8, 2020

    Agmo Studios: Homegrown Excellence And Blockchain Synergies
    Asia Blockchain Review recently caught up with Tan Aik Keong, the founder and CEO of Agmo Studio Sdn...

    August 7, 2020

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us