China’s Digital Yuan doesn’t need reserves to maintain the value
Unlike other Stablecoins, china’s cryptocurrency (Digital yuan) will not need the reserves to maintain its value.
The head of the Digital Currency Research Institute of the People’s Bank of China Mr.Mu Changchun, said to the press at the China Finance Association Academic Annual Meeting and China Finance Forum Annual Meeting held in Beijing on the 21st.
He said that the People’s Bank of China’s digital RMB is neither a crypto asset form such as Bitcoin, nor a stable currency form such as Libra. “At present, the digital currency DCEP of the People’s Bank of China has basically completed the top-level design, standard formulation, functional research and development, joint debugging and testing. And enrich DC / EP functions, and steadily promote the introduction and application of digital forms of fiat currency. “(Huang Zihao)
Further, he said that the digital RMB developed by the People’s Bank is not understood by everyone Crypto assets, but the digitization of RMB. “The currency is not used for speculation. The RMB is used to spend, not for speculation. It does not have the characteristics of bitcoin speculation, nor does it require the currency basket assets to support the value of the currency like stable currency.” as reported by Shanghai Securities News
Published at Tue, 24 Dec 2019 16:18:07 +0000
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