The central People’s Bank of China (PBoC) released a digital yuan, e-CNY, whitepaper, in order to “explain the background, objectives, and visions” and to “seek public comments.”
“E-CNY is the digital version of fiat currency issued by PBoC and operated by authorized operators. It is a value-based, quasi-account-based and account-based hybrid payment instrument, with legal tender status and loosely-coupled account linkage,” the bank said, adding that e-CNY is “mainly a substitute” for cash in circulation and will coexist with physical yuan.
E-CNY “mainly serves” domestic retail payment demands.
The central bank once again criticized decentralized cryptoassets, such as bitcoin (BTC), claiming that they don’t have intrinsic value, are volatile, and require “huge energy consumption.”
“They can hardly serve as currencies used in daily economic activities,” the PBoC said, adding that cryptoassets are mostly speculative instruments and pose a potential risk to financial security and social stability.
The bank also stressed that “global stablecoins” “will bring risks and challenges to the international monetary system.”
(To be updated)
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