China virtual digital currencies
China recently held its China Finance Forum Annual Meeting on the Beijing Stock Exchange on the 21st of December,2019. The director of the Digital Currency Research Institute of the People’s Bank of China, Mr. Mu Changchun, spoke up at the Meeting. The People’s Bank of China is the central bank of the People’s Republic of China. The bank primarily serves the duty of carrying out monetary policy and regulates the financial institutions in mainland China. It follows the guidelines laid down under People’s Bank Law and Commercial Bank Law. The director stated that the currency not speculated for the digital RMB development by the People’s Bank. The RMB stands for Ren Min BiB which is officially considered the currency of China. Its literal meaning translates to “people’s money,” with its basic unit being Yuan. The only difference between the two is that while renminbi is the official currency of China serving as the medium of exchange, the Yuan, on the other hand, is the unit of account of the country’s economic and financial system. The RMB has changed and is in no way used for speculation. He further added that it lacks the characteristics of bitcoin speculation and neither does it require the currency basket assets to support the value of the currency like stable coins. He further added that DCEP which is the existing digital currency of the bank has completed the design, standard formulation, functional research and development, joint debugging, etc.. Now it will follow the principles of stability, privacy, controllability and reasonably select the pilot verification area, scenario and service scope. This will optimise and enrich DC/EP functions(Digital Currency/Electronic Currency) and steadily promote the the introduction and application of digital forms of fiat currencies. The establishment of DC/EP functions has made China the world’s first sovereign digital currency. However it differs from from other virtual digital currencies such as Bitcoin, etc..
Further this digital currency provides unlimited liability, indicating that one cannot refuse to accept DCEP. Its functions and attributes have a high resemblance to banknotes and coins that circulate in the market. The new feature of “double offline payment” indicates that both income and expenditure can conduct as well as paid offline. In simpler terms, As long as you have a battery in your mobile, payment and collection can be done even with zero signals.