People’s Bank Of China (PBOC) is close to launching its own cryptocurrency which aims at replacing cash in circulation. For those who don’t know, PBOC is China’s central bank.
PBOC’s researchers have been working really hard on their crypto project since last year. Mu Changchun, deputy director of the PBOC’s payments department, said at an event that it is “close to being out”.
Mu also said that the currency will support yuan’s circulation and internalization.
Banks all around the world seem to be a bit scared of Facebook’s cryptocurrency (Libra). The PBOC is no exception. Furthermore, the PBOC suggests that the Libra must be put under its oversight to prevent financial risks.
Sun Tianqi, an official from China’s State Administration of Foreign Exchange, said:
“Libra must be seen as a foreign currency and be put under China’s framework of forex management.”
The currency is intended to give Beijing more control over its financial system. The population will be able to swap yuan for digital currency via mobile wallets.
“It is without a doubt that with the announcement of Libra, governments, regulators and central banks around the world have had to expedite their plans and approach to digital assets.”