A senior official of the Central Bank of China told new details about the digital currency being created. The new cryptocurrency, which the Chinese authorities are going to release, will have some similarities with the Libra token presented by Facebook. It can also be used on major Chinese payment platforms such as WeChat and Alipay. This was reported by Reuters with reference to the deputy director of the payment department of the People’s Bank of China Mu Changchun.
According to him, the digital asset will help protect the currency sovereignty of the country as the commercial applications of such currencies expand. He said that tokens will be as safe as paper money issued by the central bank, and they can be used even without an Internet connection.
In 2014, the Central Bank of China created a research group to study the matter of issuing its own digital currency with a goal to reduce the cost of circulating traditional fiat money and tighten control over the money supply.
Since then, the regulator did not say much, but last month Changchun announced that the digital currency was almost ready. Forbes said that the coin could be ready by November 11th.
Some analysts believe that China seems to have decided to speed up the launch of the cryptocurrency after the Facebook social network announced the release of its Libra token in June.