China continues working on its own state digital currency, stated Zhang Yifeng, the chief of a government-funded blockchain research center. He didn’t specify the time launch. The China Banknote Blockchain Research Center was founded by the China Banknote Credit Card Industry Development, which is owned by a direct subordinate of the country’s central bank.
Previously the central bank’s former head Zhou Xiaochuan announced that the development of a government digital currency is “inevitable”, and it might be realized on the blockchain. These statements come as rumors start to spread indicating that digital currency has already been launched. Zhang denied the launch and called the rumors “fake news”.
In his more recent interviews he stated that if digital currency is launched, it will exist in parallel with the fiat money system. According to Zhang, the function of a payments tool is central to a state digital currency, and neither bitcoin nor ethirium qualify, because their storing value has overtaken their payments role.