China’s sovereign digital currency not to impact monetary policy: official

A shopkeeper shows the WeChat app, a Chinese digital wallet on May 21, 2019. (AFP)

China’s digital currency aims to substitute for the central bank’s M0 supply of paper notes and coins, and its issuance will hold no implications for monetary policy, a central bank official said on Wednesday.

The digital currency will have to observe all China’s existing rules for cash and foreign exchange management, Mu Changchun, deputy director of the payments department of People’s Bank of China, told a forum in Hong Kong.

This requirement would also apply to any stable coin accepted in China, he added.

Last Update: Wednesday, 20 May 2020 KSA 09:56 - GMT 06:56