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China's sovereign digital currency not to impact monetary policy -c.bank official

Credit: REUTERS/JASON LEE

China's digital currency aims to substitute for the central bank's M0 supply of paper notes and coins, and its issuance will hold no implications for monetary policy, a central bank official said on Wednesday.

HONG KONG, Nov 6 (Reuters) - China's digital currency aims to substitute for the central bank's M0 supply of paper notes and coins, and its issuance will hold no implications for monetary policy, a central bank official said on Wednesday.

The digital currency will have to observe all China's existing rules for cash and foreign exchange management, Mu Changchun, deputy director of the payments department of People's Bank of China, told a forum in Hong Kong.

This requirement would also apply to any stablecoin accepted in China, he added.

(Reporting by Alun John in Hong Kong; Writing by Brenda Goh in Shanghai; Editing by Clarence Fernandez)

((brenda.goh@thomsonreuters.com; +86 (0) 21 6104 1763; Reuters Messaging: brenda.goh.thomsonreuters.com@reuters.net))

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