“Digital Renminbi”: Non-virtual currency, non-online payment and electronic wallet.
Mu Changchun, deputy director of the Department of Payment and Settlement of the Central Bank, said at the third Yichun Forum on Finance of China held recently that the Digital Monetary Research Institute under the Central Bank had started the development of the digital monetary system as early as 2018, and the central bank’s digital currency was “on the verge of emergence”. It is understood that in the future, the central bank will not issue digital money directly to the public, but will adopt a two-tier operation system, that is, the central bank first converts digital money to banks or other operating institutions, and then to the public by these institutions. In the early stage or in some scenarios, the central bank’s statutory digital currency will be tested, which will be further promoted after maturity. For the sake of prudence, it will do a good job in designing the exit mechanism.