In today’s altcoin news, we are heading to China and the central bank which is the People’s Bank of China (PBoC). Reports show that the PBoC is “progressing smoothly” with the creation and development of the government-backed cryptocurrency known as the digital yuan.
On January 5, we could see an official statement coming from the bank during a working conference held in Beijing (from January 2 to January 3) as a news release published yesterday confirmed.
Within it, we can see that China has devoted five years of research and system development work to its forthcoming central bank digital currency (CBDC) as it proceeded to conduct its first real-world pilot of the currency in December 2019.
It is described as a form of digital legal tender, where the digital yuan will be controlled by the PBoC and 100% backed by the reverses commercial institutions that are paid to the institution. As the bank noted in a brief statement when describing the progress of the digital yuan, it is all part of a conference that is devoted to “studying and implementing the spirit” of the Fourth Plenary Session of the 19th Central Committee of the Communist Party of China which was held in October 2019 – and the December annual Central Economic Work Conference.
With multiple speeches from the PBoC President Yi Gang and the Chinese Communist Party Secretary Guo Shuqing, we could see that the conference talked about the digital yuan and the work done by PBoC in 2019. It also outlined the bank’s key tasks for continuing to develop “socialism with Chinese characteristics” in 2020.
As we can see, the bank’s 2020 remit under the aegis of the Party Central Committee and the State Council will also include making “countercyclical adjustments” to monetary policy, tackling financial risks and pursuing an ongoing liberalization of the national economy.
Still, we can see that the impact of the Chinese digital renminbi and the state-led blockchain strategy remain moot. Analysts are now watching Beijing for clues as to the evolving stance in terms of interoperability, censorship, international strategy as well as regulation.
All in all, this is a solid move for China and proof that the digital yuan is backed by a lot of institutions.
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