People’s Bank of China reveals Digital Yuan as mandatory, to be treated like cash

The People’s Bank of China (PBOC) revealed today that the new digital yuan will be mandatory to deal with and that it will be regulated like cash. Sharing his views on Financial News China in a new opinion article, a senior executive revealed that the digital asset will be treated just as ordinary traditional assets and stores of value.

Fan Yifei, deputy governor at the PBOC, stated the necessary regulations required for the bank to operate with the digital yuan.

The deputy governor revealed that the digital currency will primarily exist as an M0 type of currency. It is otherwise popularly known as ‘narrow money.’

Essentially, M0 is a category tier that defines certain assets as notes and coins circulating in the economy as well as the Central Bank’s operational balance. As such, Fan stated that the digital yuan will need to comply with existing cash management regulations and laws.