BUSINESS China's central bank releases white paper on digital yuan development

BUSINESS

China's central bank releases white paper on digital yuan development

Xinhua

17:51, July 16, 2021

BEIJING, July 16 (Xinhua) - China's central bank on Friday released a white paper on the progress of the country's digital fiat currency, or the e-CNY. It summarized the currency's background, technology roadmap and development objectives.

A sign indicating payment by China's new digital currency is accepted is seen at a checkout in a Walmart store in Beijing on July 2, 2021. (Photo: CFP)

The e-CNY is the digital version of the fiat currency issued by the People's Bank of China and it is handled by authorized operators. It is a value-based, quasi-account-based and account-based hybrid payment instrument with legal tender status and loosely-coupled account linkage, the white paper clarified.

As the digital economy develops, the share of transactions made using cash is rapidly declining in China.

Meanwhile, a variety of so-called cryptocurrencies such as Bitcoin pose potential risks to financial security and social stability, given their lack of intrinsic value, acute price fluctuations, low trading efficiencies and huge energy consumption, the white paper noted.

The development of the e-CNY system aims to create a new form of RMB that meets the public demand for cash in the digital economy era.

"Supported by a retail payment infrastructure that is reliable, efficient, adaptive and open, the e-CNY system will bolster China's digital economy, enhance financial inclusion, and make the monetary and payment systems more efficient," read the white paper.

Terms of Service & Privacy Policy

We have updated our privacy policy to comply with the latest laws and regulations. The updated policy explains the mechanism of how we collect and treat your personal data. You can learn more about the rights you have by reading our terms of service. Please read them carefully. By clicking AGREE, you indicate that you have read and agreed to our privacy policies

Agree and continue