People’s Bank of China says research and development work will continue in 2020. Beijing is keen to create a digital currency to offset perceived risks posed by bitcoin and Facebook’s Libra
China’s central bank said on Sunday it will continue with its research and development into the creation of a sovereign digital currency in 2020, but fell short of saying when it might be launched.
In a summary of its annual work conference held last week, the People’s Bank of China (PBOC) said it made “smooth progress” on the issue in 2019.The PBOC was one of the first central banks to promote the idea of a digital sovereign currency, partly because Beijing regards cryptocurrencies like bitcoin as a threat to financial security, and other digital currencies, like Facebook’s Libra, as a challenge to its capital account controls.
When the bank’s digital currency research institute stepped up its rhetoric on the issue last year – after plans for Libra’s launch were announced in June – there was speculation that a Chinese sovereign currency could arrive as early as November.