(Yicai Global) Sept. 14 -- China’s upcoming digital version of the Chinese yuan is a form of cash in circulation and will be able to be exchanged for free at the country’s commercial banks, according to an article by the vice governor of the People’s Bank of China published today.
As a form of M0 money supply, the central bank will set up a free-of-charge digital yuan exchange system and will not charge distributors for exchange and circulation services, the China Financial Information Network reported, citing Fan Yifei.
Commercial banks are the designated institutions to take the lead in providing exchange services to ensure the security and stability of the digital yuan system, he added. Non-bank payment institutions may not engage in the exchange of digital yuan. Only commercial banks, which are have greater capital and technical strengths, have this right.
The central bank will manage the quota of the digital currency and formulate unified business, technical, safety and application standards, Fan said. The PBOC will also handle all digital yuan data, recording, monitoring and analyzing complete records of the cryptocurrency's exchange and circulation figures so as to improve its operations in the digital era.
The digital yuan wallet should be managed as a whole and the digital currency infrastructure should be built as a whole, in order to realize connectivity among different institutions and ensure a stable and orderly circulation of the digital yuan, he said.
Editor: Kim Taylor