Ex-People’s Bank chief blasts Libra, says digital Yuan does not plan to replace fiat

Zhou Xiaochuan, a former governor of the People’s Bank of China (PBoC), expressed his views on China’s digital currency electronic payment (DCEP). He believes that the digital Yuan will not overthrow the order of the global monetary framework, South China Morning Post reported on Sunday.

Whilst speaking to attendees at the Shanghai Financial Forum, Xiaochuan noted that the DCEP initiative should not be seen as “great power chauvinism.” The ex-chief went further to throw some jabs at Facebook’s Libra. Referring to Facebook’s initial cryptocurrency that was recently rebranded to Diem, he said:

We are not like Libra and we don’t have an ambition to replace existing currencies.

He went further to explain that rather than threaten the currencies of other nations, DCEP hopes to promote cross-border transactions and boost the Yuan’s international status.

The digital currency is China’s attempt to digitalize its payment system. The currency is pegged to the Yuan and is to be issued by the PBoC. While several countries have begun exploring digital assets and developing nationally-backed digital currencies, China’s efforts are arguably one of the most advanced to date. The country is already testing mobile tap payments for its digital currency.