Central Bank Digital Currency Will Gradually Replace Traditional Monetary and Payments Tools: Ex-Bank of China Head

884

The former head of one of China’s big state-owned banks says the statutory digital currency slated for imminent release by the Chinese central bank will have sweeping implications for the country’s finance and monetary systems.

Li Lihui (李礼辉), former head of the Bank of China, said that China’s launch of a central bank digital currency is very likely “transitional” in nature.

According to Li the focus of the launch will be “succession and replacement,” meaning maintenance of existing monetary market mechanisms and monetary policy transition mechanisms, as well as gradual replacement of traditional monetary and payments tools.

Li made the remarks on 13 January at the “Future of Digital Currency” (数字货币未来) research symposium held by Peking University’s National School of Development.

Officials from the People’s Bank of China (PBOC) announced towards the end of 2019 that the launch of its central bank digital currency was “imminent,” although they have yet to release a detailed timeline.

Ac­cord­ing to a re­port from Sina at least 15 com­pa­nies are help­ing PBOC with the de­vel­op­ment of its statu­tory dig­i­tal cur­rency, in­clud­ing big state-owned banks, Chi­na’s big three tele­coms com­pa­nies and some of its lead­ing tech com­pa­nies. 

These com­pa­nies re­port­edly in­clude: 

  • In­dus­trial and Com­mer­cial Bank of China (ICBC),
  • Agri­cul­tural Bank of China (ABC), 
  • Bank of China (BOC), 
  • China Con­struc­tion Bank (CCB), 
  • China Mo­bile, 
  • China Tele­com, 
  • China Uni­com, 
  • Ten­cent, 
  • Huawei.

Related stories

15 Com­pa­nies Re­port­edly Par­tic­i­pat­ing in De­vel­op­ment of Chi­na’s Cen­tral Bank Dig­i­tal Cur­rency

Chi­nese Cen­tral Bank Is­sues Warn­ing over Use of Statu­tory Dig­i­tal Cur­rency as Cover for Fraud

Chi­na’s Tri­als of Cen­tral Bank Dig­i­tal Cur­rency Still Far Off, Will Only Be In­ter­nal Tests

PBOC to Trial Cen­tral Bank Dig­i­tal Cur­rency in Shen­zhen, Suzhou; Big Four State-owned Banks to Take Part