In a recent People’s Daily interview with Mr. Zhang Yifeng, President of the China Banknote Blockchain Technology Institute, who is a member of the Academic Committee of the People’s Bank of China Financial Science and Technology Research Center, a member of the Mobile Finance Committee of the China Internet Finance Association, and a member of the Blockchain Research Working Group of the China Internet Finance Association, Mr. Zhang indicated that China would not allow any forms of digital currencies until China’s central bank People’s Bank of China releases its own version of digital currency.
Mr. Zhang stated “In my opinion, if the central bank issues digital currency, it must also be linked to the currency value of today’s legal currency. It belongs to the legal currency and will not create another currency system. However, the specific form of the statutory digital currency issued by the central bank may also follow a deepening of our understanding, reflecting a dynamic process. In other words, the digital currency itself is the result of the dynamic process of currency digitization. Today, our understanding of digital currency is not the same as two years ago. It is very likely that we will continue to update our understanding of this form of digital currency in the future.”
He is positive with the future of China’s own digital currency as he further stated “Many of the impacts of technological progress are still unpredictable today. This is also a problem that we have been studying. In general, the application of digital currency should be able to improve the efficiency of the entire monetary system, reduce operating costs, and improve its security.“