The bank is being very careful to verify the theoretical reliability and stability of the digital asset.
Yi Gang, Governor of the People’s Bank of China (PBoC), commented during an interview, that his administration does not have a timetable for the next steps of its digital currency project. Gang assured that the bank does not have a date for the launch of the Digital Yuan and that the financial institution is still working on it.
Gang offered his statements through an interview with some local media. Although the local media has not published the report, what Gang said during the interview is available on the PBoC website. Gang offered the interview during the renowned annual Conference of Chinese People’s Political Consultations. In that meeting participate thousands of members, including parliamentarians and congressmen.
For some months, experts argued that it was difficult to determine the official use of the digital currency without having yet a date for its launch. Yi Gang confirms that, until now, the People’s Bank of China has not been able to establish a schedule and this may be the result of multiple tests that the systems are still undergoing.
Regarding the digital currency, the People’s Bank of China has been focused on the internal tests of the Digital Currency / Electronic Payment (DC / EP). A few weeks ago, the central bank informed it would be conducting tests in some cities to measure the performance and usefulness of the digital asset.
Yi Gang mentioned that the tests that they conducted in key cities such as Shenzhen and Chengdu only provide necessary data to continue the development process so people should not confuse this process with a possible launch date. “Testing is routine work in the research and development process and does not mean that the digital RMB will be officially issued. There is no timetable for when it is officially released,” he explained.
Despite these statements, Yi Gang assured that this technology would be ready before the Winter Olympics Games, the important event that would take place in 2022 in the city of Beijing. For this reason, the bank is being very careful to “verify the theoretical reliability and stability of the system.”
Regarding the usefulness of digital currency with national circulation, the Governor of the highest financial institution in China explained that it is very “favorable to efficiently satisfy the public demand for a legal currency under the conditions of the digital economy.” He added that the Digital Yuan is a fundamental piece in the fight against counterfeiting of payments and money in China, providing greater security for users and stability for the region’s economy.
The People’s Bank of China started the project in mid-2014. Since then, the bank has achieved great progress with its project. According to the Governor, much of the development of the digital currency and its support system is already complete.
Although the People’s Bank of China confirmed that there is no precise date for the launch of the Digital Yuan, some political and financial experts estimate that China could accelerate the launch of its digital currency due to the strong tensions that the Covid-19 outbreak has generated in the United States. The Digital Yuan could be a key piece to avoid serious situations in the economy in the supposed case of facing some type of retaliation by the United States.
By María Rodríguez
