PBOC: Digital RMB will not be mass distributed and fully rolled out in near future

The Peoples Bank of China (PBOC), China's central bank, said that the preliminary digital currency is limited to a pilot and will not be issued in large numbers in the short term 

The upcoming digital currency from the PBOC has attracted widespread concern recently.

The central bank said the pilot program will not see full rollout in the near future and the currency circulation speed will also maintain normal levels, according to CCTV.

The head of China's PBOCdigital currency research institute recently said that digital RMB research and development work is now progressing steadily. Currently, PBOCdigital currency is being piloted in Shenzhen, Xiongan, Chengdu and Suzhou.

Experts explain that the concept of digital currency is well understood when you think of the PBOC-issued digital currency as digital yuan cash.

Dong Ximiao, a special researcher at the National Laboratory of Finance and Development, said you can use PBOCdigital currency without opening a bank account or payment account, as long as you have a digital currency wallet.

PBOC's digital currency uses the latest dual offline technology and can still be used even when there is no cell phone signal. Just hold the phone with the digital currency wallet together and touch it, and you can easily complete the transfer or payment.

At the same time, the PBOC issues digital currency from the replacement of bills and coins in circulation, which means that assuming the current currency in circulation is 100 yuan, the PBOCdigital currency will replace the 100 yuan equivalently.

The new digital currency is exchanged one-for-one with the previous paper currency, and commercial banks have to exchange the previous currency in order to get digital currency, which does not increase the total amount.