The national digital currency raised many question marks

The Chinese press has released new information about the national digital currency project. Ejinsight newspaper claims that former members of the Chinese Central Bank’s (PBoC) board have doubts about the project.

The central bank has officially announced that it will

“Continue the in-depth studies on the digital currency and will continue to monitor the latest development of digital currency initiatives around the world.”

The next step, according to PBoC Deputy Governor Fan Yifei, is testing digital assets in a controlled environment. The tests will be conducted in selected geographical regions, starting with Shenzhen.
Apparently, the applicability of the project is called into question by former PBoC officials.

Not everyone agrees with a national digital currency

Former PBoC governor Li Lihui explained that distributed technology may not be the best choice for the national currency.

“If China were to launch their digital currency soon, limiting the scalability and inefficiency of current transactions would make it unable to be used to meet our nation’s huge demand for transactions, given our massive retail market. Therefore, PBoC should remain neutral to the technology underlying the digital currency, not make it dependent on a single technology platform. ”

There have also been skeptics in China’s regulatory authorities over a state-backed digital yuan. Sun Tianqi, chief accountant at the State Administration for Foreign Exchange, was among them:

“In the short term, I have a neutral position with a negative prejudice. In theory it should be used in cross-border transactions, but in practice it would be difficult to implement ”,

said Sun, in a discussion at Beijing Peking University, quoted by the South China Morning Post.

Inside the crypto space, a state-backed digital asset is also viewed with caution.

DLT technology can offer anonymity and confidentiality, but it can also be used in a way that tracks virtually all transactions, leaving a permanent record.