Mu Changchun, head of the digital currency research institute at the People’s Bank of China (PBoC), said during a forum in Hong Kong that the holders of China's national digital currency will not receive interest payments.
According to Reuters, which has quoted Mu's statements, the digital yuan has been designed to replace existing coins and banknotes and its holders will not receive interest payments. As a result, the digital currency will not affect inflation or monetary policy in any way.
According to this, the digital yuan will initially be given to commercial banks and other institutions, which will be responsible for distributing it among the general public.
Mu said in September China's digital national currency will share some features with Libra, Facebook's stablecoin, and that it will be available in important national services such as WeChat and Alipay. In addition, he added that in spite of the numerous rumors, it is still unknown when the currency will be launched.
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