A central bank official said Beijing is considering the experience of using a Chinese digital currency during next year’s Beijing Winter Olympics.
Li Bo, deputy governor of China’s central bank, warned that China is not aiming to replace the digital yuan with the dollar and reduce its global dominance.
He added that there is no timetable for the nationwide rollout of the digital yuan.
The central bank has been researching the use of digital yuan since 2014, and has finally implemented a number of experiments in several cities that have allowed citizens to use digital currency in their daily transactions.
Li Bo-at a sub-forum of the annual conference of the Boao Asian Forum on Sunday-mentioned that the people’s Bank of China (the central bank) is studying regulations for bitcoin and stablecoins, the new China news agency (Xinhua) reported.
If any type of stablecoin is to become a widely used payment instrument in the future, these currencies must be subject to strict control such as financial institutions such as banks or semi-banks, Lee said in a video speech.
I added that measures must be taken so as not to cause speculation on asset encrypted significant financial risk, indicating that these assets are investment options, and not a currency per se.
Li explained that if crypto assets were to play a role, they would be used as investment instruments or alternative investments, as many countries, including China, are studying their regulatory environment.
“Stablecoins” refers to digital currency initiatives supported by large technology or financial companies and built on blockchain technology.
Zhou Xiaochuan, a former governor of the people’s Bank of China, said Sunday that when developing digital currencies, the monetary sovereignty of central banks must be respected, and there should not be a single currency scenario for everyone.
Each state had its own macro-governance and monetary sovereignty; however, some states still had certain control over foreign exchange, which was not easy to mitigate.
He added that using the central bank’s digital currencies of different countries for cross-border payments would be complicated because it includes different rules and regulations.
Zhou stated that by developing the digital yuan, China aims to upgrade the retail system first, rather than using it for cross-border transactions.