As the threat of domination of the Facebook’s Libra is looming globally, a wave of apprehensioncan be observed over China as well.In the wake of these fears, china is taking relevant steps to make certain changes in its digital policies.
Recently, China has replaced Yao Qian with Mu Changchun as the new chief of the Research Subsidiary on the digital currency of the Peoples Bank of China (PBoC).
Reportedly, China is in a process to launch its own Central Bank’s digital currency (CBDC) to combat the probable dominance of Libra on its economy.
Official reports by the Shanghai Securities confirmed that Mu would be the new chief of the Digital currency Research department, whereas Yao has been designated as the General Manager of the Securities Depository and Clearing Corporation.
Digital Currency Research Institute
The institute was established in 2016 to research and explore the possibilities of releasing a new local digital currency to restrain the interference and dominance of other cryptocurrencies on the Chinese currency Yuan before banning them.
Series of Statements by Changchun Mu
Owing to the current global scenario, Mu has been observed as quite outspoken in the last few months.
Last month Mu had declared that the Central bank would soon launch China’s own digital currency, after thorough research of almost five years.
Earlier in July, he commented that Facebook’s Libra should be scrutinized by the central banks. More recently, he has been more vocal by initiating an online audio guiding series elaborating PBoC’s current digital currency project and electronic payments.
In August while addressing, “China Finance 40 Group” meeting as a Department Chief of Payments and Settlement Division, he had stated that official CBDC would soon be launched, but had not mentioned any particular date of launch.
Mu added, “People’s Banks digital currency can now be said to be ready.”
How the Central Bank Digital Currency (CBDC) will function?
As per Mu, the new digital currency would be based on the blockchain technology and could be exchanged for cash. Unlike other decentralized cryptocurrencies, it will be controlled by the Public Bank of China.
He also mentioned that China’s main goal for creating an official digital currency is still to facilitate the use of Yuan globally and has claimed that the central bank has been vigilant towards using the digital currency for other applications.