UTC-05:00,Wednesday , August 21st 2019

China's State Media: The Central Bank's Introduction Of Blockchain-Based Digital Currency Is A Major Change In The Monetary System

19:50 Tuesday , August 13th 2019
On August 14, People's Daily Online, the biggest newspaper group in China and the official newspaper of the Central Committee of the Communist Party of China, has issued a document, focusing on "what is the great significance of the central bank's digital Ren Min Bi (RMB)?"
The article said that the digital currency of the People's Bank of China (the country's central bank), which has been studied for five years, seems ready to come out. The digital currency introduced by China's central bank does not refer to the currency digitization under the existing monetary system. Instead, it is based on new Internet technologies, especially blockchain technology, citing the article. There is no doubt that the introduction of a new encrypted electronic monetary system is a major, significant change for the currency system, it stressed. According to the report, China's central bank digital currency will adopt a two-tier operating system, that is, the People's Bank of China first converts digital currency to banks or other operating agencies, and then the digital currency will be open to the public by the above-mentioned institutions. In this process, the central bank will adhere to a centralized management model: the central bank does not presuppose the technical route, does not necessarily rely on blockchain technology, but will fully mobilize market forces to achieve system optimization through the sound competition.
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