on the crypto
According to recent statements by the People's Bank of China (PBOC) official Mu Changchun, the country's digital yuan is ready for trial. The central bank's digital currency (CBDC) will certainly not be a speculative resource such as bitcoin or stablecoin and will not need a basket of currencies for support, said Changchun. The reactions to the announcement are varied, with some Chinese traders disappointed, reportedly finding other means of speculating.
No Bitcoin, not speculative
The head of the PBOC Digital Currency Research Institute, Changchun said on Saturday during a financial meeting in Beijing that "the digital yuan is used for spending, not for speculation. It doesn't have the characteristics of speculation on bitcoins, nor does it require a basket of assets to support their value like stablecoins, "said Shanghai Securities News.
The media details that Changchun claimed that the digital yuan would not be a cryptographic resource such as bitcoin or a type of stablecoin, as proposed by Libra.
Preparation "Basically completed"
The report quotes Changchun saying:
"At the moment, the People's Bank of China DCEP [digital currency electronic payment project] has substantially completed high-level design, standard formulation, research and functional development, joint debugging and testing."
The next step is to start launching pilot programs for the currency, although no specific time frame has been indicated. Upon completion, the project plans to issue the currency to commercial banks which would then disperse the CBDC to the public.
Public reaction to the Changchun statement
The reactions to the news have been varied, according to reports. A user of the social media platform Weibo reported that "If you don't allow me to speculate on the digital form of the yuan, I will speculate on other things, like foreign exchange." Another on Sina.com says that "So there will be no fun. "
The reception outside the regional media has not been so dynamic, perhaps because few are surprised by the news, given the Chinese government's consolidated past of opposing speculative practices when it comes to cryptocurrencies.
Despite President Xi Jinping's bullish statements in November, officials have made it clear that the Chinese government's push is for the development of a regulated blockchain industry and not for ICOs or other speculative practices. Banks cannot trade in decentralized cryptocurrencies such as bitcoins, nor can exchanges directly facilitate their trading.
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