Central Bank Mu Changchun: The People's Bank of China's digital currency is an alternative to M0, and should comply with all current regulations on anti-money laundering.

Babbitt News, Deputy Director of the Department of Payment and Settlement of the People's Bank of China, Mu Changchun, said on August 10th in the third "China Financial Forty People Yichun Forum" that because the People's Bank of China's digital currency is an alternative to M0, so for the cash It does not pay interest, it will not trigger financial disintermediation, and it will not have a big impact on the existing real economy. In addition, all current regulations on cash management, anti-money laundering, and counter-terrorism financing should be observed. The large amount of money and suspicious transactions of the People's Bank of China should be reported to the People's Bank of China. The People's Bank of China's digital currency must have high scalability and high concurrency performance, which is suitable for small-scale retail high-frequency business scenarios. In order to guide the People's Bank of China's digital currency to be used in small-scale retail scenarios, it does not have an extrusion effect on deposits, avoiding the procyclical effect under arbitrage and stress environment, and can set transaction limits and balance limits according to different levels of wallets. In addition, some of the cost and friction of the exchange can be increased to avoid procyclical conditions in a stressful environment. More information: https://www.8btc.com/article/462253