A former chief of the People’s Bank of China (PBoC) announced that the approach of China with regards to virtual currency would be in favor of the local retail system as well as international payments.
The current president of the Chinese Finance Association and former PBoC governor, Zhou Xiaochuan, has drawn two forms of central bank digital currencies’ (CBDCs) applications.
According to the November 26 report of the local publication Caixin, Xiaochuan discussed in his speech during the 2019 Caixin Henqin Forum, the first type of implementation is a domestic retail system oriented through electronic payment. On the other hand, the second type is international remittances for defrayals between financial institutes.
Zhou: China will pursue focusing on virtual currency
The prominent Chinese banker Zhou highlighted the challenges that come with the CBDCs. He also stressed that China’s traditional currency is the “symbol of national sovereignty.” The former PBoC official added that central banks, especially those who have “super sovereign power,” should be imperatively cautious when choosing their path to take, and a mistake can potentially lead to a credit catastrophe.
Notably, Zhou is one of the most influential financial specialists in China, as well as the PBoC chief who served for the longest time. He stated that China’s continuance along its digital yuan path is devoted to the local retail system and payment.
Successively, it was elucidated by the PBoC that it does not have any particular date for launching its digital currency. The said financial organization also noted that it still needs time to research and assess the initiative.