A former senior official with the People’s Bank of China (PBoC) believes the nation should join a global conversation about regulating stablecoins, with a particular focus on the Libra stablecoin.
“I think it’s critically important to join the discussions and take part in coordinated global regulation of Libra,” Zhu said, noting there is still no specific timeline to launching the digital yuan, which is also called Digital Currency Electronic Payment (DCEP), according to the report.
The comment comes as central banks and financial institutions put forward guidance on how to better regulate stablecoins. International organizations such as the G7 working group and the Financial Action Task Force have taken steps to evaluate and regulate Libra’s potential impact on the global financial system.
China in particular is racing Libra to launch its stablecoin, the digital yuan. Last year David Marcus, who oversees Facebook’s blockchain wallet subsidiary Calibra and is a member of the Libra governing council, warned U.S. legislators that China would win the currency race should Libra be halted.
The Chinese central bank initially assembled a task force in 2014 to develop its own national digital currency. However, it accelerated the process and released more details about DCEP when Facebook unveiled its plan to launch Libra in June 2019.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.