The People’s Bank of China Prioritizes The Development Of National Cryptocurrency

The People’s Bank of China (PBoC) announced that it intends to accelerate the development of its own cryptocurrency project.

In a statement dated August 2, the results of a video conference were summed up, in which the bank spoke about the priorities of the Party Central Committee and the State Council concerning the economic and financial projects, ranging from monetary policy to the support for SMEs. In addition, the statement also indicates that great attention should be paid to other domestic and foreign cryptocurrencies.

The Bank said that it should strengthen measures to eliminate financial risks, as well as the interpretation of its policies and respond quickly to social problems. In all likelihood, the Central bank is giving priority to the development of the digital currency in response to the growing spread of cryptocurrencies globally, especially after the announcement of the Facebook Libra project. Back in early July, Central Bank Director Wang XIN said:

“Libra could create a scenario under which sovereign currencies would coexist with U.S. dollar-centric digital currencies. But there would be in essence one boss, that is the U.S. dollar and the United States. If so, it would bring a series of economic, financial and even international political consequences.”

It is also alleged that the People's Bank of China has received the approval of the State Council to begin work with other market participants in the development of the digital currency.

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