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China has shut down rumors that it will launch its national digital currency in November.
In a statement to Piyao, the People’s Bank of China (PBoC) denied the speculations, saying the November date was “inaccurate” as well as the details of institutions that will reportedly participate in the project.
The clarification followed after news sources, including Forbes, reported in late August that the PBoC will release its digital currency as early as Nov. 11 and that it will be issued to China’s four biggest commercial banks, along with Alibaba, Tencent, and UnionPay.
As such, the central bank has urged the public to follow official announcements as the project’s progress will be announced in due time.
The clarification also noted the difference between China’s digital currency and other virtual currencies such as Bitcoin, noting the former is legal and will be backed by the state credit. Also, when compared with current e-wallets or online payments, the PBoC’s digital currency will not replace the existing yuan system. It will be a digitalized yuan instead, the statement clarified.
Further, the statement explained that the PBoC will implement a two-prong operation system for the digital currency, adopt a centralized management model, and continue to utilize a current operation structure for cash services through a joint collaboration between the PBoC and commercial businesses.
The new digital currency will be circulated like cash that can be used in small amounts for retail business setups and daily payments.
Earlier this month, reports revealed that the PBoC has organized a dedicated team from its Digital Currency Research Lab to develop its digital currency in a closed-loop environment, on an isolated location away from its Beijing headquarters.
