PBOC Exploring International Usage of Digital Renminbi

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The head of the Chinese central bank says the authority is investigating the cross-border and international usage of the digital renminbi despite the complexity challenges involved.

Yi Gang (易纲), governor of the People’s Bank of China (PBOC), said that while the focus of the digital renminbi is currently on domestic applications, research had already commenced on international usage scenarios.

“In terms of international [usage], we are also currently conducting in-depth investigation,” said Yi during a speech delivered at an event held by the Finnish central bank.

“Cross-border and international usage is comparatively complex, and involves legal issues such as anti-money laundering measures and client due diligence.”

“The People’s Bank of China is willing to strengthen cooperation in the digital currency sphere with the central banks of different countries and international organisations.

“We have already jointly launched the multilateral mCBDC bridge project with the Bank for International Settlements, the Bank of Thailand, the UAE Central Bank and the Hong Kong Monetary Authority, to jointly research the functionality and technical feasibility of central bank digital currency (CBDC) for cross-border payments.

“We have also undertaken technical-level exchanges with the European Central Bank concerning CBDC design.

“In future, we will continue to use open and accommodating methods to explore CBDC standards and principles with central banks and international organisations.”

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