China’s sovereign digital currency plan in doubt with concerns raised about wider application
- The People’s Bank of China (PBOC) stepped up its plan to launch a sovereign digital currency in response to Facebook’s plan to launch its Libra digital currency
- China has been strictly regulating trading of other digital currencies, such as bitcoin, cracking down on exchanges and mining sites
Doubts over the application and usage of digital currencies in China have cast a shadow over Beijing’s plan to start a groundbreaking sovereign digital currency, suggesting the official launch could be much later than expected.
Some have called for caution with regards to China’s digital currency, with the urgency to rush through Beijing’s own plan now lessened as Libra, which is perceived by Beijing as a major threat to China’s financial sovereignty, faces major regulatory obstacles worldwide.
Speaking about the wider use of digital currency in China and not specifically a sovereign digital currency, Sun Tianqi, who is the chief accountant at China’s foreign exchange regulator, the State Administration on Foreign Exchange, said that he is not optimistic.