Speaking at the 13th annual Lujiazui Forum in Shanghai, Mu Changchun said that the state-backed digital yuan can be stored in a variety of wallets — digital, physical, personal, or public — Bloomberg reported on Friday (June 11).
Changchun, director general of the Digital Currency Research Institute of the People’s Bank of China (PBOC), said the digital yuan wallets were developed so that they can be used by everyone and in a variety of formats. The wallets are also intended to meet multiple demands.
Chinese citizens can apply for a wallet based on their credit limits, preference of digital or physical, and how they intend to use it, he said, per Bloomberg.
The Lujiazui Forum is a global platform intended to advance financial reform and facilitate international financial cooperation. Central bank governor Yi Gang spoke about China’s monetary policy and the “development of green and inclusive finance,” Shine reported.
Yi said that despite the COVID-19 pandemic, China’s average gross domestic product is anticipated to hit growth targets and inflation should remain below 2 percent this year.
The PBOC is in the midst of conducting several digital yuan trials and has given away more $3 million via lotteries in different cities. Unlike bitcoin, which has no central agency backing, the digital yuan is backed by China’s central bank.
The digital yuan or renminbi could roll out for a larger trial at the Beijing Winter Olympics next year. The eCurrency will be used for the domestic economy and is not intended to reduce the country’s reliance on the U.S. dollar.
The digital yuan will co-exist with Alipay and WeChat Pay. Alibaba’s Ant Group is the official central bank partner for the digital yuan, which also is known as e-CNY.