Yi Gang, governor of the People’s Bank of China has said although progress has been made on the countries own digital currency there is no planned release date.
Speaking at a press conference in Beijing he stated China’s “digital currency for electronic payments” design aims to replace part of M0 instead of M1 and M2, and the country’s digital currency plan will not change its current path of currency supply,
M0 money supply is normally defined as currency in circulation. M1 is calculated as M0 plus demand deposits. Lastly, M2 is known as broad money supply and includes a much broader range.
It has been said there is no launch date as the PBoC needs more time to research test and evaluate such a currency and prevent risks.
Security is the main concern like with many other nations. If the digital currency is to be used in cross-border business, more regulations related to anti-money laundering, counter-terrorism financing and tax evasion need to be put in place, according to the Governor.
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