Wednesday, October 20, 2021

China clears rumors about its central bank-backed cryptocurrency.

The Takeaway:

China's central bank-backed digital currency will not launch in November. Governor Yi Gang denied all the reports that claimed Alibaba and Tencent would be the first one to use the digital currency. There is no set timeline when the government will launch its official digital currency.

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The governor of the People’s Bank of China (PBOC) Yi Gang cleared speculations surrounding the country’s official cryptocurrency. According to several media reports, China was supposed to launch its central bank-backed cryptocurrency in November of this year. But Global Times has reported citing an official statement that China has not set any timeline as to when the cryptocurrency would be launched. 

Governor Yi Gang said that the work progress of the digital currency would be issued in due time and asked people to only trust official notice. The central bank further added that China’s digital currency would act as a legal currency backed by the state credit. 

Earlier several reports suggested that firms like Alibaba and Tencent would be the first one to use the digital currency, but Central bank denied such claims. Former governor Zhou Xiaochuan earlier said the government should prepare to compete with Facebook’s cryptocurrency Libra by making yuan stronger through digital currency. 

The central bank also clarified that the digital currency would not replace the yuan and would be used in the retail sector. The PBOC further mentioned that the official digital currency would also have to mem all the necessary regulatory requirements before its launch. 

Recently Facebook revealed the fiat currencies that would back the Libra, and Chinese yuan was not included. Let us know in comments what do you think about the Chinese central bank-backed digital currency. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Cheng Wei Chan
Cheng Wei Chan
Cheng is an AI & APP Engineer based in Taipei City, Taiwan. After completing his graduation in Computer Science from National Taiwan University, he dedicated his life into researching and writing about technologies such as blockchain, cryptocurrency, artificial intelligence and application development.

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