The department noted that the state virtual currency will not be as speculative as Bitcoin and the Facebook Libra payment system.
China is ready to begin testing the digital renminbi, said Mu Changchun, head of the payment and settlement solutions department of the People’s Bank of China. He noted that the payment system has already passed functional research and the debugging stage, and now it is necessary to launch pilot programs.
Changchun added that the digital yuan will only be used for settlements and will not become the same speculative currency as Bitcoin or Libra (the Facebook payment system). Moreover, the national cryptocurrency of China will not need to provide a basket of assets, like other stablecoins, the representative of the department noted.
He explained that the next step would be to allow the use of the digital renminbi by commercial banks. They will be entrusted with the function of further transferring the cryptocurrency to the public, Changchun said.
On December 9, the Central Bank of China revealed the details of pilot testing programs for the digital renminbi. For this, four commercial banks and three telecommunication companies were involved, which should develop applications for storing cryptocurrency and SIM cards with built-in wallets.