Former head of the NBK: "Digital yuan will prevent dollarization of the economy"

Former head of the People's Bank of China (NSC) Zhou Xiaocuan said, that digital yuan will develop retail payments in China and prevent the dollarization of the economy.

The president of the Chinese Financial Association said this at the Eurasian Forum. Zhou Syochuan (Zhou Xiaochuan) said, The Central Bank of China perceives state cryptocurrencies differently, Unlike the countries of the "big seven", which includes Canada, France, Germany, Italy, Japan, Great Britain and the USA. The regulators of these countries are focused on problems and threats, which can represent bitcoin and other digital currencies, And even the Libra Stablecoin not yet released.

The Central Bank of China is focused exclusively on the use of its digital currency for retail payments within the country. The department is trying to prevent the popularization of the US dollar and takes measures, so that the dollar becomes less used for calculations in China. According to Xiaochuan, This is the main goal of the digital yuan.

Last year, the US Department of Finance began to explore the systemic risks of the Libra cryptocurrency project, which can affect the international economy. At the same time, the United States is in no hurry with the launch of its own digital currency. Recently chairman of the US Federal Reserve (FRS) Jerome Powell said, that the digital dollar should not be launched until then, All risks have not yet been eliminated, associated with cyber attacks, fraud and money laundering.

Many central banks adhere to a similar position, Considering, that you need to carefully study the problems of state stablecoins. They can become a partial analogue of fiat money, Therefore, many questions arise, related to legal and regulatory standards.

China's approach to digital currencies of the Central Bank is really different from other countries. Instead of theoretical reasoning, Chinese authorities prefer to conduct research in practice. In August, testing the electronic payments system based on the digital currency of China began (DCEP), And this month, the leadership of the NBK reported, that a hardware wallet for a digital yuan is ready for testing.