The head of the payment and settlement solutions division of the People’s Bank of China (PBOC), Mu Changchun, reported on the appearance of fake wallets for the digital yuan.
Changchun explained that the digital yuan is still in the testing stage, but fake wallets for the state-owned cryptocurrency have already begun to appear on the market. Therefore, Changchun said that it is necessary to take measures as soon as possible to solve this problem, before it “grows” on a large scale.
The NBK employee noted that the fight against counterfeit paper banknotes requires very high costs, and in the case of digital currencies, the costs can increase several times. To cut costs, the Chinese central bank should make the digital yuan wallet easily recognizable.
In addition, it is necessary to establish effective cooperation with other companies and government organizations. They will be able to contribute to the development of the financial product by adding special features that make it difficult to fake a wallet. Changchun added that the active actions of the Chinese government to test the digital yuan does not mean that after its launch, the country will completely switch to a digital economy.
The central Bank and state authorities will not apply any coercive administrative measures to “push” the population to the digital currency. On the contrary, the NBK plans to use a market-oriented approach and issue a state-owned stablecoin depending on demand.
“How many digital yuan citizens need – so much we will issue. We will continue to print paper yuan as long as people need it. I believe that the digital and paper yuan will be able to co-exist for a very long time, ” Changchun said.
In August, Chinese banks began full-scale testing of the digital yuan app and wallet to prepare for its official launch. Earlier, the former head of the NBK Zhou Xiaochuan (Zhou Xiaochuan) said that the main goal of the digital yuan is to develop retail payments in China and prevent the popularization of the dollar among the Chinese population.