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PBoC says China’s National Cryptocurrency won’t be Rolling-out Anytime Soon, Despite Rumors

September 23, 2019
Ross Peili


PBoC says China’s National Cryptocurrency won’t be Rolling-out Anytime Soon, Despite Rumors

The People’s Bank of China announced last night that media reports of China launching a national digital currency as soon as November are exaggerated and labeled it as ‘inaccurate speculation’ by the central bank.

According to Global Times, the statement was reportedly issued on China’s official ‘rumor refuting platform’ on Saturday, claiming that all the posts that have been circulating online since the end of August promoting that Chinese government-backed crypto is on its way out, are the merit of speculations.

PBoC didn’t deny the fact that the bank is working alongside the Chinese government in order to deploy a digital currency, but it backed-off on it being released on November 11th as many media outlets reported earlier this month.

The ‘rumors’ as described by official PBoC representatives, seem to be quite accurate, though, as they exposed the first digital banks involved in the yuan-backed national cryptocurrency. And PBoC couldn’t deny that, but only the date of the release which was set to be on one of China’s largest fairs on November 11th.

Indeed digital payment titans such as Alibaba, WeChat, Tencent, and UnionPay, among others, will be involved in the process and distribution of the currency, which according to government officials will utilize blockchain technology for convenience reasons. It will, however, be strictly backed by the Chinese yuan, and will serve as a digital representation of the already established local currency.

Furthermore, PBoC asks the public to follow only official statements regarding the development of the project and said that the currency will be issued in due time.

The central bank wants to introduce a two-prong operation model for the cryptocurrency, that will utilize a centralized management model similar to the country’s fiat services which are, again, a joint effort between PBoC and financial brokers such as AliPay, and WeChat, the report explained.

Additionally, the statement says that the new digital currency will be helping the monetary circulation similar to cash, able to be used in micro amounts in retail business use-cases and, in general, ease people’s use of money on an everyday basis.

Besides the fact that the Chinese government responded to the ‘some sort of leak’ as rumors, it confirmed a lot of the aspects mentioned by the exposures published last month.

At the same time, Facebook’s Libra development and recent debates with central banks, financial regulators and various governmental bodies, might just ‘scare’ China’s ambitious plan which was apparently not ready-to-be-deployed as previously believed.

The report might be an attempt to delay the introduction to a whole new monetary era, which is in the end, only unavoidable, or just setting things clear, before the official launch.

Nevertheless, this is just an addition to the basket of government-backed cryptocurrencies that have been discussed, and in some cases developed, by major monetary power-brokers such as Germany, the US, and France, indicating that stablecoins are indeed having a ‘moment’ at the current stage of the crypto industry.