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China close to launching its own digital currency

According to an official from People's Bank of China, the country was almost ready to issue the digital currency.

China close to launching its own digital currency

China's central bank announced it was almost ready to issue the country's very own sovereign digital currency.

According to a Reuters report on Monday, China’s central bank set up a research team in 2014 to explore the possibility of launching its own digital currency to replace paper money and boost policymakers’ control of money supply.

Mu Changchun, deputy director of the People’s Bank of China’s payments department, stated that the issuance of the digital currency will rely on a “two-tier” system in which both the central bank and financial institutions will be legitimate issuers.

He also said that the digital currency would not just rely on blockchain as current blockchain technology would not be able to handle transaction volumes in China.

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