China's central bank plans to launch its own digital currencies
[BEIJING] China's central bank wants to launch its own digital currencies to cut the costs of circulating traditional paper money and boost policymakers'control of money supply, the People's Bank of China (PBOC) said on Wednesday.
A PBOC research team set up in 2014 to look into digital currencies should make preparations for launches, according to a central bank statement.
"The team ... should set up a clearer strategic target for launching digital currencies, overcome the key technological barriers ... and aim for an early launch of the central bank's digital currencies," the PBOC said.
Virtual currencies can also help boost transparency of economic activities and curb money laundering and tax evasions, it added.
One of the most popular digital currencies is bitcoin, which is created through a 'mining' process where a computer's resources are used to perform millions of calculations.
But the rise of bitcoin, which is unregulated in many countries, has stoked concerns it can be used as a vehicle to launder money and finance extremist groups.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Banking & Finance
JPMorgan talking with investors about two synthetic risk transfers
HSBC says growing Chinese wealth fuels client investments in US
Money laundering accused Su Baolin to plead guilty after being handed 3 more charges
UBS flags 'serious' concern about new Swiss capital requirements
OCBC should put its properties into a Reit and distribute the trust’s units to shareholders
Lloyds bank says quarterly profits sink on higher costs