China's central bank, the People's Bank of China (PBoC), will obligate accepting the digital yuan as legal tender, said Deputy Governor of the PBoC Fan Yifei.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.
According to Yifei, the digital yuan fully compensates the local fiat currency.
"The historical evolution of the legal tender form is driven by technology and demand, gradually transitioning from a physical form to a digital form," he added.
Yifei also highlighted that the digital yuan was initially designed to be a legal tender in all public and private companies in China, and no unit or individual may refuse to accept it if it meets the conditions for acceptance.
Earlier, the Chinese authorities announced the expansion of testing of the national digital payment system. The experiment was planned to be directed to large commercial operations, including China's largest food delivery giant Meituan Dianping backed by Tencent Holdings Ltd.
iHodl also reported that China-backed the Blockchain Service Network (BSN) project will start working with stablecoins in 2021.
The stablecoins will reportedly be used to pay for various services in the BSN ecosystem, including cloud resources. In addition, stablecoins will allow instant settlements between public nodes belonging to different cities and the so-called "portals."
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.