Private sector allowed to participate in Chinese central bank’s digital currency project

By Ma Jingjing Source:Global Times Published: 2019/11/10 20:28:40

The first blockchain-based invoice for tourist attractions in Southwest China's Yunnan Province is issued at an international blockchain forum in July. Photo: VCG

Private companies and institutions will be allowed to participate in the infrastructure for the Chinese central bank's digital currency project on the condition that they follow the law, assist with supervision, serve the public and have high moral standards, an official said on Sunday.

Mu Changchun, head of the People's Bank of China's (PBC) research unit on digital currencies, made the remarks at the 10th Caixin Summit held in Beijing, domestic financial news site reported.

The PBC has introduced a dual-operation system, namely asking the private and public sectors to jointly develop a digital currency, Mu said.

He said the central bank may also use the private sector to jointly develop public goods.

"Mu's speech indicates the central bank would like to cooperate with private internet companies... instead of existing digital currency companies," Cao Yin, an insider in the blockchain sector, told the Global Times on Sunday.

Cao said that the PBC will vet private companies' capacity in blockchain technology as well as their operating history, namely, whether they have acted against the public interest.

Cao's comment was a reference to illegal behavior of so-called blockchain companies to issue digital currencies to raise funds, launder money or participate in illegal pyramid schemes.

At the summit, Mu also said countries can discuss whether various central banks can jointly solve the issue of cross-border payments by issuing digital currencies, according to


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