The People’s Bank of China turned up the speed towards the development of its cryptocurrency project. The central bank is not waiting for cryptocurrencies to challenge the position of sovereign currencies.

The PBoC released a summary of its video conference on 2nd August that covered the new policies and initiatives suggested by Party Central Committee and the State Council on the financial and economic front.

According to the summary, PBoC is planning to add momentum to its digital currency project. Taking measurable actions for research and development of the project, PBoC urges more attention to be paid towards the development of more domestic cryptocurrencies. The bank also suggested the development of a framework that remediates the financial risk associated with cryptocurrencies.

PBoC has submitted 74 digital currency patents to National Intellectual Property Administration till date. The PBoC launched its digital currency project in 2014 and by 2017 it established a research institution for cryptocurrencies.

The experts suggest the sudden acceleration is fueled by the introduction of Libra coin and the acceptance of the cryptocurrencies by the masses.  Wang Xin, Director PBoC stated in early July 2019 that Libra is a sound project that could ensure both self-governed and traditional currencies exist in the market.

Zhou Xiaochuan, former governor PBoC made a statement against Libra coin according to which, china must stay aware of Libra’s penetration in China. Taking action on the statement PBoC is beginning to work on the development of its digital currency in a joint effort with other market players purportedly in the light of the approval by the State Council.

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