Does the central bank have a timetable for launching digital currency? Zhou Xiaochuan, former president of the People's Bank of China, responded

Source: Sina Finance

Editor's Note: The original title is "Does the central bank have a timetable for launching digital currency? Zhou Xiaochuan responds

Sina Finance News The 20th Caixin Summit in 2019 was held in Beijing from November 7th to 10th. Zhou Xiaochuan, president of the China Finance Association and former president of the People's Bank of China, attended and gave a speech.

Wang Shuo, editor-in-chief of Caixin Media, asked Zhou Xiaochuan whether the central bank has a timetable for launching digital currency. In this regard, Zhou Xiaochuan said that five years or even longer, some banknote makers have proposed that the alternative of banknotes may be digital currency, but did not focus on the application of blockchain or distributed accounting system. possibility.

"China has been planning to do some research since then, but the initial research may not progress by leaps and bounds, because technology still takes a long time to master. Now that it has been done for a long time, there may be many ideas, and I am now I left the People's Bank, so if you want to know the progress and when to push it, I think that you will participate in the Caixin Summit anyway, and you will ask them to ask."

When talking about digital currency, Zhou Xiaochuan said that the private sector can participate in retail payments, and that third-party payments in China have also played a big role, and the development is also very fast, but the development of the basic electronic payment track is not based on blocks. Chain and distributed accounting based digital currency.

In its view, the central bank’s digital currency will still focus mainly on its own country.

“The central bank may focus more on wholesale, doing a wholesale of digital money between banks and third-party payments. But in theory, the digital currency of the central bank can also serve retail, but for retail services. It will have a big impact on the existing financial system, so everyone is very cautious."

Zhou Xiaochuan stressed that if the central bank's digital currency is to target cross-border transactions such as cross-border remittances and investments, then many new requirements must be met.

"Not a central bank can manage it, and it may need a joint mechanism."

He emphasized that the regulatory requirements for digital currency application and progress at different levels are different, and an organizational coordination mechanism is needed in the future. He cited anti-money laundering as an example.

"Now the world attaches great importance to anti-money laundering and counter-terrorism financing. How anti-money laundering and counter-terrorism financing can be cut into every different level of payment system has become a huge challenge. It may obviously increase costs and also make efficiency. It has declined, but it is really necessary because globally, it now attaches great importance to such functions."