Cryptocurrency News

The former PBOC executive says the digital yuan has been conceived to counter platforms such as Alipay

Yao Qian, former director of the People’s Bank of China, said China’s digital yuan would use smart contracts, and would be built to counter payment platforms such as Alipay, designed by the privately owned conglomerate.

Speaking at the International Finance Forum in Beijing, Qian argued that merely emulating its physical counterpart would not be sufficient for the digital yuan to succeed. To take full advantage of being digital, it will move towards “smart currency” using smart contracts, couple According to local sources.

He said that the legal money needed to be renewed to keep central banks in line with the wave of digitization. Qian then listed the European Central Bank, the Bank of Japan and the Central Bank of Canada as examples of working on smart contract-based digital currencies.

Qian Allegedly Said that China’s initial idea of ​​a digital yuan was to counter the impact of private payment platforms that have become increasingly popular, presumably meaning Alipay, the country’s ubiquitous payment service. However, he stressed that the Chinese government has not developed the digital yen as a monitoring tool to track all transactions in real time:

“The digital yuan needs to achieve a balance between protecting users’ privacy and tightening up on crimes such as money laundering, tax evasion and terrorism financing.”

Central banks can provide digital currencies to users without intermediaries “if digital dollars and digital yen run directly on blockchain networks such as Ethereum and Diem,” Qian further explained. He said that the layered operations could enable the digital currency of the central bank to better benefit the unbanked people and achieve financial inclusion.

Yao Qian is the director of the Bureau of Science and Technology Supervision of the China Securities Regulatory Commission. Previously, he was the director of the Digital Currency Research Lab of PBoC. He has been known for his work on Digital Yuan since its early stages in 2014. His friendly attitude towards crypto as an official of China’s SEC counterpart earned him the nickname “Chinese Crypto Dad”.