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China first in the world that can issue digital currency Central Bank

A digital currency can be introduced for use in electronic wallets to support direct and peer to peer transactions. This "trick" can be an app on your smartphone, but a final decision on the design yet, the newspaper said, citing Mu Changchun, Deputy Director of the Department payments and settlements people's Bank of China.

CBDC - a new form of money issued in digital form by the Central Bank and serving as legal tender - it is provided by reserves, valuable assets, deponirovanie commercial institutions in the Central Bank.

Testing closed circuit has already begun, with the aim to simulate specific payment scenarios, it passes with the participation of several commercial and non-governmental agencies, said an official from the people's Bank of China, who wished to remain unnamed.

At the initial stage of CBDC is only intended for use within the country. In the future it hopes to enter the same exchange rate as on the physical money, but the mechanism of cross-border transactions is much more complicated, it will require coordination in the relevant policies with other countries, said the official publication.

"If China successfully produced the world's first CBDC, it will encourage other countries to accelerate the appropriate research and taking part in the competition in creating the CBDC," - said the Director of the digital Finance Institute of Peking University Huang Yiping.

CBDC can be considered as deposits of residents on account of the Central Bank, said global chief economist at Everbright Securities Peng Wensheng.

As confirmed by the representatives of the people's Bank, the CBDC will replace banknotes and coins, or cash in circulation /M0/, it is designed for retail payments at an early stage.


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