China to launch new action plan to strengthen digital currency management and operations

Kathmandu. China has announced that it will launch a new 'action plan' to strengthen the management and operation of its digital currency from January 1. Lu Lei, the deputy governor of People's Bank of China PBOC, the country's central bank, gave this information on Monday. Writing in Financial News, a media outlet under the central bank, Deputy Governor Lu said that the digital yuan of the future will be developed as a means of modern digital payment and circulation. According to him, the digital yuan will be issued and circulated within the financial system and it is expected to make the existing payment structure more efficient.

He informed that the 'new generation' system will be implemented from January 1 as the next important step in the development of digital yuan. The system will cover measurement framework, management structure, operational mechanism and overall ecosystem. It aims to make the use of digital yuan more systematic and widespread. Under the announced action plan, banks will provide interest on the balance kept by the customers in the digital yuan account. This is seen as an important incentive to increase the use and acceptance of digital yuan.

The plan also includes a proposal to establish an international digital yuan operations center in the eastern financial center of Shanghai. It is expected to help promote the digital yuan internationally and increase its use in cross-border payments.