Yao Qian: The Main Purpose of DC/EP Development Is to Improve the Status of Legal Tender

Abstract : Compared with other digital currencies, the competitiveness of DC/EP has not been clearly demonstrated.


Jun 04

June 4 (ChainDD) Yao Qian, the director of the Science and Technology Regulatory Bureau of the China Securities Regulatory Commission, stated at the recent International Financial Forum (IFF) 2021 Spring Meeting that the birth of DC/EP was in the context of the digitalization wave.

In his opinion, it is necessary for the central bank to actively innovate the issuance and circulation of fiat money, explore DC/EP to optimize the payment function of legal tender, alleviate the impact of private digital payment tools, and improve the status of FIAT and the effectiveness of monetary policy. In the long run, the emergence of digital currency or digital payment tools may certainly change the existing pattern, but that is the result of the natural evolution of the digital process and market selection.

Yao Qian emphasized that the authenticity of digital identities, privacy issues, security issues or larger social governance propositions require us to do in-depth research in the digital world. He further pointed out that the research and development of DC/EP must be a complex systemic project, which was not only a problem in the technical field, but also involved laws and regulations, financial stability, monetary policy, financial supervision, international finance and other broader fields. The current digital Dollar, digital EURO and digital YEN seem to be gaining momentum. Compared with them, the competitiveness of DC/EP has not been clearly demonstrated.

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