Mu Changchun – deputy director for the People’s Bank of China’s (PBoC) – has reportedly revealed that the country’s digital yuan will have some significant differences, compared to Bitcoin (BTC) and stablecoin.
Reported by the South China Morning Post on December 22, deputy director Mu Changchun shared that the upcoming cryptocurrency of China, which will be a digitalised version of the yuan, will allow for no speculation, regarding its value, and will receive no support from any groups of currencies.
“The currency is not for speculation. It is different to bitcoin or stable tokens, which can be used for speculation or require the support of a basket of currencies.” Mu remarked.
Wu further claimed that a two-layer operating system will be employed to run the new cryptocurrency of China, led by the PBoC, and followed by commercial banks in the second layer of the centralized system.
In November this year, the PBoC announced that a pilot will be happening, as part of the plan to restrict cash transactions on a generalised level, within a 2-year timeframe, and will be initiated through different phases in Hebei Province, Zhejiang Province and Shenzhen City.
The new digital yuan is a project designed to complement the paper version of the currency, not to wage war on cash, according to Wu.