PBoC gives biggest indicator to CBDC adoption yet, says digital yuan will be “undoubtedly” pursued

• The People’s Bank of China (PBoC) has spoken about its commitment towards creating a digital version of the yuan.
• Researchers say that the current pandemic could encourage the adoption of digital payments across the world.

In a recent notice, The People’s Bank of China has yet again reiterated its plan of creating a digital version of the yuan. 

The People’s Bank of China (PBoC) will undoubtedly further its research and development of the national digital currency with enhanced top-down design.

This notice is a summary of the 2020 National Currency Gold Silver and Security Work Video and Telephone Conference, which was convened by Yifei Fan – the central bank’s vice-governor. During this meeting, the bank’s top priorities for the upcoming year were announced.

This is not the first time the digital yuan has been mentioned in the annual meeting. In 2018, the bank said it would pursue the project “at a steady pace.” Last year, it said it would “accelerate” the process considering the trends in crypto space, both locally and internationally.

Researchers at the Bank for International Settlements (BIS) recently said that the current coronavirus outbreak could increase digital payment adoption and inspire more discussions about digital currencies among central banks across the globe. According to the notice, in addition to the push for Digital Currency Electronic Payment (DCEP), the PBoC aims to reform the system to issue and withdraw cash to manage cash circulation in a better way.