Former Bank of China President, Li Lihui, has revealed the launch of the digital yuan is imminent, and that the currency tin replace cash if iv key conditions are met.

The fundamental bank digital yuan is currently in the exam phrase and is generating excitement amongst Chinese cyberspace users. Searches on the bear on of the digital yuan and cryptocurrency in full general has skyrocketed in contempo times.

Lihui gave a live streaming talk on People's News on May 5 and explained that unlike WeChat Pay and Alipay, the digital yuan is designed to exist independent from whatsoever network or third party bank. However, he said for the digital yuan to replace cash or other current payment solutions, four cardinal conditions needed to be met:

"Whether the digital Yuan can become the ascendant form of currency and mainstream payment ways, depends on whether it has greater efficiency, lower transaction costs, plenty economic calibration with commercial value, and people' credence."

Different forms of digital currencies

Li believes if a currency uses digital engineering, it tin can be called digital currency. He defines digital currency into three categories: legal digital currency (referring to Cardinal Bank Digital Currencies or CBDCs), blockchain-based cryptocurrency, and trusted institution digital currency.

Crypto currency, such as Bitcoin is designed to exist bearding only transparent. The digital yuan, according to Li, besides allows for applied science that permits anonymous transactions. Withal, he added that limits would exist placed on the frequency and amounts involved in anonymous transactions.

Equally Cointelegraph reported previously, the Bank of Mainland china has carried out pilot testing on the CBDC in different sites and it believes it will not cause inflation.