The Central Bank of China has revealed new details …

Central Bank of China revealed new details of the upcoming national digital currency

Commercial banks and other financial institutions will vie with each other to provide the best tools based on China’s national digital currency when it launches, said Mu Changchun, head of the central bank’s payment and settlement solutions division. Writes about it Reuters.

Speaking at a forum in Hong Kong on Wednesday, Mu stated that the digital currency will initially be distributed to financial institutions that will work with the general public..

“During the research and emission period, our approach will be like horse racing. The leader, the most effective, who can provide the best service, will take over the entire market and will be able to survive in the future, “he said..

Mu also stressed that the People’s Bank of China will be neutral to all proposed technologies, but the leader’s technology is likely to be adopted by other players..

The Central Bank of China revealed new details ...

Since the digital currency is intended to replace existing coins and banknotes, its holders will not receive interest payments, which, in turn, will avoid additional problems with inflation, said the representative of the Central Bank..

He confirmed that Chinese regulators remain concerned about the creation of the Libra stablecoin, noting that such instruments threaten the country’s currency sovereignty. Acceptance of such instruments by Chinese entities would be a violation of foreign exchange rules, he warned.

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