The People’s Bank of China’s administration thinks that the digital currency (the one they are developing) might replace fiat, paper money. Besides, the PBoC representatives continue to carefully monitor information about the cryptocurrency and blockchains development not only within the celestial empire but also beyond this territory.
Let us remind you that in July Wan Xing, the head of the research department, claimed that the development of the Libra project from Facebook makes China’s authorities force the development, creating and launch of their national cryptocurrency.
Wu Changhai thinks that China’s virtual coin (the analog of yuan) has all the chances to replace real money. He also declares that introducing digital assets can become a serious hardship for criminals responsible for money laundering. To point it out, the professor thinks that introducing digital yuan can drastically change all the infrastructure of the celestial empire. He also noted that due to the peculiarities of modern national governing Libra won’t be able to influence fiat yuan.
Changhai thinks that legal digital assets can replace banknotes. Meanwhile, the token itself doesn’t have any monetary functions. According to this, the government cannot transfer rights of distribution to private companies. Anyway, the modern stage of digital currencies’ development doesn’t provide such an opportunity for us.
This way China is getting ready to introduce legal national cryptocurrency to the public, and it will become the analog of fiat yuan. It will help to raise the national currency to the new development level.