People’s Bank of China: digital yuan to be circulated nationwide

The main financial regulator of China continues dedicated work in the field of development in the national cryptocurrency and believes that after its implementation, it should be applied throughout the country. The deputy chairman of the regulator Fan Yifei noted in his article to Financial News that the asset under development will be positioned as M0, that is, as part of fiat money and will legally be comparable to the same standards as ordinary money.

“The digital yuan must comply with regulations and directives in the area of ​​financial asset management, such as the People’s Bank of China Law and the RMB Administration Regulation,” the official wrote.

He also noted that the work of financial institutions to promote a digital asset should be carried out jointly. Thus, Fan Yifei clarified that commercial banks and related institutions will have to provide services for the circulation of the digital yuan under the supervision of the People’s Bank of China and, accordingly, be responsible for the management of retail relations in order to ensure the safe and efficient use of the new crypto-asset.

We add, in August, the Ministry of Commerce of the PRC announced the expansion of tests of the central bank’s national digital payment system (DCEP).