According to the former administrator of the Bank of China, Li Lihui, the launch of the digital version of the yuan is already inevitable. Regulated Token (CBDC) will replace cash in the future.
China is currently testing the digital version of its currency. The largest companies and banks of China take part in testing the new instrument.
Li Lihui emphasized that, unlike traditional payment systems, CBDC will be independent of any network or third-party bank. However, to completely replace cash and crowd out existing payment solutions, four key conditions must be met.
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The ex-head of the Bank of China said: "Whether the digital yuan can become the dominant form of currency and the main means of payment depends on whether it will have greater productivity, lower transaction costs, large-scale use and mass adoption by people."
According to him, the digital yuan, as well as bitcoin, will be anonymous. However, the Central Bank will set limits on the frequency and amount of the anonymous transaction of each CBDC holder.