Mu Changchun, head of the Institute for Digital Currency Research at the People’s Bank of China (NBK), revealed more details about the upcoming digital yuan.
According to Reuters, at a forum in Hong Kong on Wednesday, Mu said that China’s digital currency is intended to replace existing coins and paper money, and its owners cannot count on interest payments. Therefore, a digital currency will not have effects on inflation or monetary policy.
The official said the NBK will first release digital currency for commercial banks and other institutions, which will then distribute it to the public.
“During the study period and release phase, we will use the following approach. The largest institutions will take control of the entire market, that is, those most effective organizations that can provide the best service to the public, can survive in the future, ”said Mu.
In August, Mu Changchun announced that the digital currency of the People’s Bank of China was ready to launch, and in September noted that it would be similar in architecture to Facebook’s stable Libra. Recall also that recently the Institute of Digital Currencies of the People’s Bank of China and Huawei concluded
financial technology research partnership agreement.