According to the Reuters report, Mu Changchun, deputy director of the payments department of People’s Bank of China (PBOC), said that the country’s digital currency would fall under the existing rules that cover cash and foreign exchange management.
PBOC official also said that the digital currency is aiming to substitute the paper money, and it would have no implication on the country’s monetary policy. Along with the country’s official digital currency, all the stablecoins that are accepted in the country would have to follow all the existing rules for cash and foreign exchange management.
China has been working on its cryptocurrency from last 4 to 5 years. Chinese officials have not revealed the timeline as to when the digital currency would be available for people in the country. Earlier, the President of China Xi Jinping endorsed the blockchain technology, which had a positive impact on the price of the leading cryptocurrency.
