(Yicai Global) Sept. 19 -- China’s central bank, the People’s Bank of China (PBOC), is expected to introduce China’s own sovereign digital currency following recent restrictions and ban on virtual currency exchange platforms in China, Financial News reported.
Financial News is the authorized publication of PBOC. It published a commentary in which it said the central government imposed a ban on virtual currency exchange platforms to prevent such virtual currencies like Bitcoin posing financial risk and to maintain stability. The sovereign states are still the foundations of world politics, it reminded. It is impractical for virtual currencies to try to challenge currency issuance rights of sovereign states and to require denationalizing currency issuance, said the commentary written by Huang Zhen, director of the Financial Law Institute of the Central University of Finance and Economics and dean of internet inclusive finance institute.
China clearly knows how to digitalize a currency and is making active deployment, the commentary said in a clear indication that the central bank is prepared to unveil virtual currency if and when necessary. The People’s Bank of China has already established a research group and digital currency research institute to explore sovereign currency digitalization.