China’s central bank stresses its central role in new sovereign digital currency

China’s central bank stresses its central role in new sovereign digital currency

  • Fan Yifei, deputy governor of China’s central bank, says the main aim of the digital yuan is to defend the state monopoly on creating money
  • The People’s Bank of China official did not provide a timeline for the launch of the currency

China is developing a sovereign digital currency with the primary goal of defending the state’s monopoly on minting money, meaning the central bank will play a central role in the issuance and circulation of a digitised yuan, a deputy governor at the People’s Bank of China (PBOC) has written.

PBOC deputy governor Fan Yifei published an article in the bank’s Financial News newspaperarguing that creating money was the sole responsibility of a central bank and China’s digital currency will fall under its “centralised management”.

The comments show Chinese authorities will maintain full control of data about issuance, circulation and transactions of the digital yuan.