People’s Bank Of China Seeks To Launch Its Own Digital Currency

Digital currencies such as bitcoin continue to garner interest across multiple industries. Different countries, however, are taking different stance – some are interested in the technology behind digital currencies, some are trying to regulate it while others seek to ban it altogether.

The People’s Bank of China (PBoC) seems to be interested in cryptocurrencies. According to latest minutes of the PBoC’s Digital Currency Seminar held in Beijing, the bank wants to launch its own digital currencies.

The meeting was attended by the PBoC Governor Zhou Xiaochuan, Deputy Governor Chair Fan YiFei, major financial institutions and advisory bodies of experts.

A special research team was set up in 2014 to explore the various aspects of digital currency – the key technology behind it, legal issues associated with it, impact on economic and financial system.  The release said that digital currencies have the potential to lower the high cost associated with traditional currencies; improve transparency of economic transactions and reduce money laundering, tax evasion and other criminal acts; help in building new financial infrastructure; improve payment and settlement system and much more.

According to a Google translated version of the release, the meeting urged the research team to “actively absorb the important results and practical experience of digital currency research at home and abroad” and “clarify the strategic objectives of the central bank issued digital currency”.

"The team ... should set up a clearer strategic target for launching digital currencies, overcome the key technological barriers ... and aim for an early launch of the central bank's digital currencies," the PBOC said.