Former Vice President of Central Bank of China Urges for Digital Currency

The former vice president of the Bank of China said digital currency could be a substitute for cash in circulation.

Wang Yongli, former vice president of the Bank of China and director of the Haixia Blockchain Research Institute, said digital currency could certainly be a substitute for cash, but it shouldn’t be limited to just that, according to the Global Times.

Wang said digital currencies could reshape monetary structures. This could include setting up “basic accounts” for all social entities on central bank digital currency platforms. This allows banks to monitor digital currencies without much impact on the current financial system.

He added that digital currencies increase the effectiveness of monetary policy as excessive issuance of physical banknotes will be prevented.

His comments come as more and more central banks consider launching digital currencies. Bank of China has been at the forefront with plans to issue a digital Yuan.

China has yet to release details on the digital Yuan but some industry insiders believe it may not be the prevailing currency due to the “China Dream.” Another central bank is starting an exploration commission into digital currencies.

The Bank of Japan recently appointed its head of research into digital currencies and the Philippines announced plans to look into its digital currency.

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