The People’s Bank of China (PBoC) is “almost ready” to launch its own digital currency, its senior executive revealed on Sunday, August 11, as cited by Reuters.
Deputy director of the central bank’s payments department Mu Changchun has revealed the plan for a state-issued digital currency during his visit to a forum in the Chinese province of Heilongjiang.
According to Mu, the PBoC cryptocurrency will rely on a “two-tier” system, where the central bank will control its supply along with some other Chinese financial institutions.
China was one of the first nations to impose a ban on cryptocurrencies. In 2017, the country ordered all local crypto exchanges to stop their operations. Initial coin offerings (ICOs) were also banned as part of the state’s campaign against crypto.
The PBoC repeatedly warned Chinese citizens on the risks of ICO and crypto investing. In 2018, several Chinese authorities issued a general note about illegal fundraising attempts, claiming that they are related to the cryptocurrency industry.
However, China has been interested in launching a government-issued digital currency at least since late 2018. Back then, PBoC experts issued an op-ed in a Chinese state-owned journal, CN Finance, about the possible benefits of a sovereign stablecoin backed by the yuan.