The People's Bank of China (PBOC) clarified in a statement on its official website that it has not yet issued any digital currencies, contrary to speculations and recent reports.
According to Reuters, China's central bank also clarified that it did not authorize asset trading platforms to use the rumored digital cash. The bank did confirm that it is testing virtual money options but a certain timetable for its release has yet to be decided.
The clarification came shortly after some finance experts speculated that the country will soon unveil its very own digital currency that could be used in various financial segments, especially in payments.
Earlier this week, managing partner at equity management firm HCM Capital, Jack Lee, said on Monday that China could be preparing to launch its very own digital currency for commercial banking use within the next two to three months. The forecast came after Beijing confirmed that it will further open up the country's financial sector to the world.
According to CNBC, Lee said the country already developed a virtual framework called the Digital Currency Electronic Payment (DCEP) that commercial banks can use.
Lee noted that the DCEP system will give authority to the central bank in allowing third-party payment platforms and commercial banks or institutions to carry out monetary transactions.
Among the platforms that could benefit from the DCEP framework are Tencent's WeChat Pay and Alibaba's Alipay. The said networks already allow for digital transactions although a digital currency has yet to be integrated into their payment systems.
Lee went on to predict that the Chinese government could launch the digital currency sometime within the next two or three months if everything goes as planned. Beijing has yet to confirm its plans regarding the currency.
Despite his early predictions about China's digital money, Lee clarified that the currency's rollout by 2020 could be part of a trial process. It will not necessarily replace physical money, especially since some global financial regulators are still adamant about digital currencies.
Among the experts who have expressed hesitance in approving digital money without proper regulation is the Swiss state secretary for international finance, Daniela Stoffel. She said that if China launches its virtual cash, monetary authorities around the world will be forced to talk about how international laws should regulate digital money.
Stoffel added that aside from regulating digital money, global authorities, including China, should also discuss what role central banks or monetary institutions should play in the regulation process.
Despite some concerns about regulating digital cash, even Switzerland has been working around the possibility of using virtual money in trading. It is unclear how far along research has gone into the said segment.
China would be the first country to launch its digital cash should the early 2020 rollout take place.
