The former vice president of a former Chinese bank argued that the digital currency should replace the fiat currency in the country’s financial systems.
Yongli Wang, previously from the Central Bank of China, said in an article he shared in the application WeChat, the widespread use of digital currencies would encourage monetary reform.
Now managing the Haixia Blockchain Research Institute, Wang said he would initially use the digital currency instead of circulating cash, but this could affect market competitiveness only if it is limited to this role.
He added that digital currencies can help increase liquidity in the economy while limiting excessive physical cash exports.
Wang also stated that avoiding too much cash pressure would help maintain monetary and financial stability. In the report, one of the ways forward is to provide the central bank’s exclusive “basic accounts” on the digital currency platform for all social assets.
Bank of China is known as one of the country’s four largest state-owned commercial banks. The comments of the former Vice President come at a time when China’s largest banks and other business organizations are starting to pilot the central bank’s Digital Money Electronic Payment (DC / EP) system.
The digital currency, often referred to as digital yuan, is designed to facilitate the exchange of all circulating cash in the country over the next decade.