China has ‘no timetable’ for launch of its digital currency, says central bank governor
- People’s Bank of China head Yi Gang says a series of regulatory issues need to be addressed before Beijing can issue sovereign digital currency
- China is the first major economy to explore launching its own digital currency
China does not have a timetable for the launch of its new digital currency, its central bank governor said on Tuesday, saying more work was needed to address a series of regulatory issues.
The People’s Bank of China (PBOC) said last month the sovereign digital currency was “almost ready”, with some media speculating it could be launched as soon as November 11 to coincide with the Singles’ Day online shopping festival.
But PBOC governor Yi Gang poured cold water on prospects of an imminent launch on Tuesday, saying the central bank did not “have a timetable”.
The development of a digital coin requires further “research, testing, trials, assessments and risk prevention”, Yi said at a press conference in Beijing.
If the [sovereign] digital currency involves cross-border use, it will involve a series of regulatory issues regarding anti-money-laundering, anti-terrorism financing, anti-tax evasion as well as know-your-client protocols
“In particular, if the [sovereign] digital currency involves cross-border use, it will involve a series of regulatory issues regarding anti-money-laundering, anti-terrorism financing, anti-tax evasion as well as know-your-client protocols.”
China is the first major economy to explore launching its own digital currency and established a PBOC-backed research institute to study the field in 2016.
Despite notching up dozens of patents over the past five years, China’s central bank disclosed little about the technology or design underpinning its coin until Facebook announced plans to launch a new digital currency named Libra in June, a move that sent shock waves through central banks and financial institutions the world over.
Mu Changchun, the PBOC official who oversees research into digital currency, said last month China’s proposed digital token would have same legitimacy as yuan banknotes and, in time, replace them to a large extent.