Thread by @DoveyWan

JUSTIN IN - China is ALMOST FINISHED its own digital fiat currency and plans to start trial by the end of this year

And instead of calling it CBDC, PBOC refers it as “DC/EP” (digital currency and electronic payment), so it gonna emphasize more on payment/settlement

GAME ON 😈

In a closed door PBOC planning meeting today, further accelerate the progress of Digital Reminbi becomes the main agenda of it. And PBOC executive brought up both Libra and Bitcoin, claimed both can’t meet the expectation of a highly scalable and parallel payment system

This is a exclusive forum (“Financial Forum of 40 People”) held by PBOC.

A few highlight of the meeting as below -

1. “Pure” Blockchain infra can’t meet ends need of daily operation for retail banking

2. Hence stuff will be structured on private cloud of PBOC (fine ...)

3. It will be “ledger agnostic”

this is quite interesting as “no matter you are on a Blockchain system or transitional banking system, digital payment or POS machine, our system can be compatible”

How it can be interoperable with both onchain and offchain remains to be seen

4. “Libra is not M0. And what we gonna issue is M0”

The discussion around Libra is whether Libra may generate monetary multiplier and further leads to financial disintermediation (like, credit derivatives with Libra peg), which can be a potential risk for market structure

Shit, my crypto keyboard did it again ..

JUST IN .. not JUSTIN IN ...

🤦🏻‍♀️🤦🏻‍♀️🤦🏻‍♀️

5. There will be smart contract live on PBOC’s system. But will be limited to functions as a CURRENCY.

So fancy stuff like DAO won’t be doable on PBOC smart contract platform most likely

6. Other part of the meeting is rather boring, basically re-iterate on why it has to be centralized and why it has to be compatible with the current “central bank - commercial bank” model.

If you wanna learn more abt digital RMB, coindesk.com/digital-renmin… check this piece I wrote