China’s Digital Currency Isn't Bitcoin and 'Is Not for Speculation', Says Central Bank Official

  • Central bank official Mu Changchun says the digital yuan will not be used for speculation.
  • Unlike Facebook's libra, Mu Changchun says the new digital currency will not be backed by a basket of currencies. 

Mu Changchun, the central bank official in charge of overseeing China’s digital yuan, says the digital currency won’t be for speculation and will be distinct from bitcoin. 

According to a report by the South China Morning Post, on Saturday Mu Changchun called the new central bank currency a “digital form of the yuan,” and said there would be no speculation on its value. He also reiterated that the currency would not be backed by a basket of currencies, such as what Facebook is planning for their stablecoin libra. 

He said, 

The currency is not for speculation. It is different to bitcoin or stable tokens, which can be used for speculation or require the support of a basket of currencies.

The central bank official revealed that the design and functional research for the digital yuan has been completed and the next step will be in rolling out pilot programs. 

While rumors and speculation pegged the release of the digital yuan before the end of 2019, there has been no official time frame for its launch. However, in November, venture capitalist Edith Yeung claimed China will “definitely” launch the digital currency in the next six to twelve months.

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