China prepares to launch its own "cryptocurrency"

posted 6 days ago
The People's Bank of China is "close" to issuing its own cryptocurrency, according to a senior official. The bank's researchers have been working intensively since last year to develop systems, and the cryptocurrency is "close to being out," Mu Changchun, deputy director of the PBOC's payments department said.

Mu repeated the PBOC's intention that the digital currency would replace M0, or cash in circulation, rather than M2, which would generate credit and impact monetary policy. The digital currency would also support the Yuan's circulation and internationalization, he said. According to patents registered by the central bank, consumers and businesses would download a mobile wallet and swap their yuan for the digital money, which they could use to make and receive payments. Crucially, the PBOC could also track every time money changes hands.
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