Zhou Xiaochuan: Encrypted digital currency or similar tokens should be considered for 100% cash payment

Zhou Xiaochuan, former president of the People's Bank of China, said in a special lecture at the Wudaokou Financial College of Tsinghua University in May that if digital money can be used as a pilot for a small country, it would be safe to promote it in a big country after successful and perfect. It further stated that if the pilot encrypts digital currency, it should consider 100% cash provision. (China Finance Magazine) More Scallions Note: It also elaborates on the design ideas of DC/EP (Digital Currency/Electronic Payments) promoted by the People's Bank of China: 1. Design, including improvements in account-based electronic payment channels Mobile payment such as scan code payment, including blockchain and distributed ledger (DLT) type encrypted digital currency system; 2. Some different systems of technology may develop in parallel, which can encourage multiple coordinated development and fast switching. But mainly to play the market enthusiasm; 3. The central bank needs to accurately measure accounting and establish custody rules, to achieve 100% reserve to maintain stability, while correcting incentives. 4. The pilot should still limit the scope as much as possible; 5. To prevent the burning of money, relying on disguised subsidies (including direct subsidies and cross-subsidies) to grab market share and distort the competition order.