ETHERLive
ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.

---

24hr ---
--%
Friday Feb 23rd 2018
RESOURCES

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More
SUBMIT

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story

Explanation

Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
---
--%
Home
News
Etherlive
Ether Price Analysis
Resources
Contact Us

PBoC Official Discusses China’s Possible Central Bank Digital Currency

By

Jordan

Daniell

WriterETHNews.com

The vice governor of the People’s Bank of China wrote a telling op-ed about the central bank’s plans for creating a state-backed digital currency.

Fan Yifei, vice governor of the People's Bank of China (PBoC), revealed new information about his country's digital currency initiative Thursday. Breaking with what had unto now been the norm – official statements and press releases – the high-ranking deputy conveyed fresh details in an op-ed article about China's plans to create a central bank digital currency (CBDC).

"It is a great waste of social resources to reinvent the wheel," wrote Yifei, in a statement that seemed to hint at the overarching ideology driving China's CBDC effort.

Until now, some have speculated that China, which has been researching the associated monetary implications of such an endeavor, might go all in on cryptocurrency – phasing out the issuance of hard renminbi and moving the national currency exclusively to a blockchain.

That will not be happening – in fact, blockchain technology might move from the forefront of the Chinese CBDC conversation to a secondary consideration. According to Yifei, "In order to maintain the central bank's digital currency properties and achieve the goal of monetary policy and macro-prudential management, China's central bank digital currency two-tier system should be different from the decentralization of various tokens distribution model."

Emphasizing how China's potential CBDC would be designed to retain the PBoC's centralized monetary authority, Yifei described functionality being explored as possessing "controllable anonymity" whereby the PBoC would act as the exclusive third party to verify transaction data."

"The central bank's digital currency should adhere to the centralized delivery model. However, the centralized delivery model described here is different from traditional electronic payment tools. The transfer of funds for electronic payment instruments must be done through an account, using a tightly coupled account. Central bank digital currency should be based on loosely coupled accounts in the form of transactions so that the degree of dependence on one account is greatly reduced. In this way, it can be as liquid as cash and can be controlled anonymously."

Yifei went on to describe how the PBoC should exercise caution when implementing some of the more advanced attributes of blockchain technology, like the executable distributed code contracts of the Ethereum blockchain, and stressed the importance of avoiding "other social and administrative functions" that are not usually associated with fiat.

Yifei's commentary provides insight into how China's CBDC effort is progressing and how officials think about this issue. Apparently, China is trying to walk the line between surging into the future of digital money without rocking the status-quo boat too much. 


Quotes translated from Chinese using Google Translate.

Jordan Daniell

Jordan Daniell is a full-time staff writer for ETHNews with a passionate interest in techno-social developments and cultural evolution. Jordan enjoys the outdoors, especially astronomy, and likes to play the bag pipes and explore southern California on foot in his spare time. Jordan lives in Los Angeles and holds value in Ether.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest China, People's Bank of China or other Ethereum world news.