The People’s Bank of China (PBoC) announced that the development of the country’s digital yuan is “progressing smoothly.” The central bank shared the news at a recently-held working summit in Beijing.
According to a January 5 news release, China has already dedicated half a decade in research and development of its central bank digital currency (CBDC). The government has previously conducted a soft launch last December.
Unlike decentralized and private cryptocurrencies, the PBoC emphasized that the digital yuan would be under its control. The assets coming from commercial institutions as payments for the bank’s services would make up the reserves that support the digital yuan.
Back in October, during the Fourth Plenary Session of the 19th Central Committee of the Communist Party of China, the PBoC said that its CBDC is almost ready to launch. This statement prompted mixed reactions from several parts of the globe, particularly from leading competitors.
Yi Gang and Guo Shuqing, the central bank’s president and the secretary of the Chinese Communist Party, jointly summarized what China achieved in 2019 in terms of CBDC development. They both emphasized the primary role of the PBoC, and that is to keep going with the progress in 2020 while enhancing “socialism with Chinese characteristics.”
As for 2020, the PBoC said that works relating to monetary policies, existing and potential financial risks, and liberalization of the Chinese economy would continue. Notably, the central bank seeks guidance from the State Council as well as from the Party Central Committee.