Digital Renminbi Could Evolve into Global Currency: Ex-Bank of China Chief

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Li Lihui (李礼辉), the former head of the Bank of China, believes that the development of the digital renminbi could pave the way for the creation of a global currency.

Li said that the digital renminbi provided a technological model for the development of a global currency, according to a report from Caishelian.

“The [digital renminbi] could have cross-border ‘spill-overs,’ and develop into a global digital currency,” said Li at the 2020 Sixth Blockchain Global Summit.

“The statutory digital currency being trialled by China adopts centralised management and indirect issuance models, and adopts a loose account coupling and digital wallet methodology.

“[It] possesses the technological advantage of non-network transactions, and can provide highly secure, highly liquid payments tools to the public, making life more convenient.”

The Chinese central bank announced the start of testing of the digital renminbi in April 2020, at cities around China including Shenzhen, Suzhou, Xiong’an and Chengdu. The announcement came following a five year research and development period first launched by former central bank governor Zhou Xiaochuan.

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