People’s Bank of China digital currency research institute head Mu Changchun recently said that the central bank’s new sovereign digital currency will be different than private cryptocurrencies and stablecoins, the South China Morning Post reports. Most notably, Mu asserted that the digital yuan will not be open to speculation:
“The currency is not for speculation. It is different to bitcoin or stable tokens, which can be used for speculation or require the support of a basket of currencies.”
Mu also confirmed that the digital yuan may be ready for pilot testing soon. According to him, developers have already completed the top-level design, functional research, and tests for the electronic payment system. The next stage of the plan involves a pilot program rollout prior to the digital yuan’s official launch.
As SCMP reports, reaction from China’s internet users suggests that many were less than impressed by the news that the central bank digital currency won’t be useful for speculation. One user reportedly wrote, “So there will be no fun in it.”
Chinese officials have yet to confirm an expected launch date for the new digital currency.