In the future, #digitalcurrencies and e-#payments may develop in multiple ways based on #competition. This will add to future #uncertainties and pose challenges for both the central bank and regulators.
The central bank can establish research institutes on #Fintech and digital currencies, but we can’t make sure that the solutions it puts forward are the best.
As #technology evolves, determining to select a certain technology solution is risky. So we may need a mechanism that enables #R&D through multiple channels and encourages #competition.
We also must ensure that once technologies are put into use, the outcomes must be controllable. A technology solution, once failed, may trigger socio-economic instabilities.
#Sandboxes are effective when they’re applied to small-scale technology solutions and experiments, but regarding much bigger ones, they may not be enough.
Under proper #regulation, private sectors can also engage in #financial #infrastructure development, perhaps through PPP. But private sectors must do it for public interest, not just for their own privileges or interests.
We should consider the influence of digital payment and currencies on the transmission of monetary policies, which is important for financial stability and the sound development of macro-economy.
By Zhou Xiaochuan, former #PBOC Governor:
mp.weixin.qq.com/s/Njc8n6ulFeb0…
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