At the financial forum held in Beijing on December 21, the director of the Digital Currency Research Institute of the People's Bank of China, the People's Bank of China, said at the Financial Forum held in Beijing, “ You are thinking about the digital currency, the digital currency developed by the People's Bank of China. '' It's not a cryptocurrency like this, but a digitized RMB. " China Securities Network reported.

Renminbi's digital currency, which is attracting attention as a counterpart to Facebook's virtual currency Libra, is expected to be piloted in Shenzhen and Suzhou soon.

"Digital RMB exists to be used instead of an investment product. In that respect, it is fundamentally different from Bitcoin." He added, "It is also different from stable coin linked to fiat currency." He added that the digital yuan is different from bitcoin and stable coin like Libra.

Mr. Mu said from other sources that the digital RMB will not be issued directly to users by the RMB, but will be exchanged for it through commercial banks. In addition, a real name system has been introduced for the acquisition and use of the digital RMB, allowing the government to view digital currency distribution and user usage data. For the time being, it is only distributed in China and is not expected to be used for international money transfers like Libra.

Although the digital renminbi is technically complete, it will take some time to issue because it needs to consider legislation and balance with private payment services.


editor

Shane is an economics and mathematics double major with a keen eye for the financial world. His understanding of the current economic model of different countries is enlightening and he aims to bring that impressive knowledge and experience into his writing. He is currently exploring writing about different genres within the entertainment, business and cryptocurrency sphere and aims to bring diversity in his writing.

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