China’s Official Newspaper: Global Central Banks Become Regular Forces for Issuing Digital Currency

[ChainDD report] May 15 (ChainDD) An article published on May 12 by International Financial Daily, the newspaper under People’s Daily, Chinese official newspaper and largest newspaper group in China, cited Report on Digital China Construction and Development (2018) released by the Cyberspace Administration of China (CAC), China's cyberspace regulator that China’s digital economy reached 31.3 trillion yuan in 2018, rising 20.9% from 2017, and accounted for 34.8% of GDP.

According to the article, entitled Global Central Banks Become Regular Forces, Yao Qian, former Director of the Digital Currency Institute at the People’s Bank of China (PBoC), said the digital economy has to be built on the fiat digital currency. He revealed PBoC, the central bank of China, is experimenting for research and development (R&D) of central bank digital currency (CBDC). Coincidently, the Bank of Canada (BoC) and the Monetary Authority of Singapore (MAS) announced on May 2 that they have successfully experimented cross-border and cross-currency payments with central bank digital currencies. This is the first such trial between two central banks, marking another new developemnt in the R&D and trials of global digital currency payments. As IMF’s managing director Christine Lagarde said, there may be a role for the state to supply money to the digital economy.

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