- The central-bank digital currency in China has been the talk of the town over the past few months.
- Even over the whole year, digital yuan in China is a very exciting project that many crypto enthusiasts are looking forward to.
The central-bank digital currency in China has been the talk of the town over the past few months. Even over the whole year, the digital yuan is a very exciting project that many crypto enthusiasts are looking forward to. But according to a senior executive at the central bank of the nation, this digital currency should be regulated in line with cash related laws and regulations.
Fan Yifei recently released an opinion article on the 14th of September explaining the regulation principles for the operation of the digital yuan. As a deputy governor for the People’s Bank of China, the digital representation of the official currency of the country is an extremely important project to work on.
According to him, a digital version of the Chinese currency is legally compensatory to the traditional Fiat currency. Highlighting in the article, he made it clear that the digital yuan would be many positioned as an M0. This would mean that the digital currency is a part of the supply of paper notes and coins and with this in mind, it would need to comply with regulations in relation to cash management.
On top of this, the deputy governor highlighted that the digital renminbi would be able to be used in order to purchase all public and private debts within the territory of China.