The People's Bank of China held a seminar on digital currency in Beijing

On January 21, 2016, the People's Bank of China Digital Currency Seminar was held in Beijing. Digital currency research experts from the People's Bank of China, Citibank and Deloitte discussed and exchanged views on topics such as the overall framework for digital currency issuance, national digital currency in the evolution of currency, and encrypted electronic currency issued by the state. Zhou Xiaochuan, governor of the People's Bank of China, attended the meeting, and Fan Yifei, deputy governor of the People's Bank of China, presided over the meeting. Experts from relevant domestic and foreign research institutions, important financial institutions and consulting institutions attended the meeting.

     The meeting pointed out that with the development of information technology and the evolution of technologies such as mobile Internet, trusted and controllable cloud computing, terminal security storage, and blockchain, payment methods have undergone tremendous changes worldwide, and the development of digital currency is bringing new opportunities and challenges to the central bank's currency issuance and monetary policy. The People's Bank of China attaches great importance to this and has established a special research team since 2014, and further strengthened its strength in early 2015. It has conducted in-depth research on the issuance and business operation framework of digital currency, key technologies of digital currency, the issuance and circulation environment of digital currency, legal issues faced by digital currency, the impact of digital currency on the economic and financial system, the relationship between legal digital currency and privately issued digital currency, and the issuance experience of digital currency internationally, and has achieved phased results.

     The meeting believes that under the current new normal of my country's economy, exploring the issuance of digital currency by the central bank has positive practical significance and far-reaching historical significance. Issuing digital currency can reduce the high cost of issuing and circulating traditional paper currency, improve the convenience and transparency of economic transaction activities, reduce illegal and criminal activities such as money laundering and tax evasion, enhance the central bank's control over money supply and circulation, better support economic and social development, and help achieve inclusive finance. In the future, the establishment of a digital currency issuance and circulation system will also help my country build a new financial infrastructure, further improve my country's payment system, improve payment and clearing efficiency, and promote economic quality, efficiency and upgrading.

     The meeting required that the digital currency research team of the People's Bank of China should actively absorb the important results and practical experience of digital currency research at home and abroad, continue to advance on the basis of previous work, establish a more effective organizational guarantee mechanism, further clarify the strategic goal of the central bank's issuance of digital currency, do a good job in key technology research, study the multi-scenario application of digital currency, and strive to launch the digital currency issued by the central bank as soon as possible. The design of digital currency should be based on the principles of economy, convenience and security, and ensure the low cost and wide coverage of digital currency applications, realize the seamless connection between digital currency and other payment tools, and enhance the applicability and vitality of digital currency.

In promoting the research on digital currency, the People's Bank of China has established communication with relevant international organizations and Internet companies, and has conducted extensive discussions with relevant financial institutions and traditional card-based payment institutions at home and abroad. People at home and abroad who participated in the discussion attached great importance to this work, and had in-depth exchanges with experts in the People's Bank of China system on related theoretical research, practical exploration and development paths. (End)