China's central bank – People's Bank of China (PBOC) – is working to get its own, centralized cryptocurrency into circulation, the International Business Times reported.
Yao Qian, who is leading the research work for the state-controlled cryptocurrency at PBOC, stresses the need of digital legal tender. He believes that digital currency would not only cut transaction costs but also extend financial services to rural areas while increasing the efficiency of monetary policies.
"The development of digital economy needs central bank-issued electronic currency more than ever. It's crucial to speed up the research and issuance," Qian was quoted as saying by the South China Morning Post.
"What the central bank has in mind is a centralized digital currency among all. As money has evolved from the barter system to its metallic and paper forms, it is now going digital," he said.
It is still unclear what China's state-controlled cryptocurrency will be called or when it is supposed to be introduced.
The research towards state-controlled cryptocurrency follows China's rigid stance against privately issued digital currencies. After prohibiting Chinese financial institutions from holding virtual currencies in 2013, the country has banned fundraising via ICOs, as well as the operation of Bitcoin (Bitcoin) exchanges.