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PBOC Governor Praises Recent Tests Of Its CBDC Project.

The former governor of the PBOC [People’s Bank of China] praised recent tests of its national virtual currency at the Hong Kong Fintech Week conference, today on Monday.

According to Bloomberg, Yi Gang added that the pilot program, that has spanned multiple Chinese cities this year, has proven successful.

Over 4 Mln transactions totaling over 2 Bln Yuan [$299 Mln] are conducted linked to the digital yuan, Yi added.

Financial services in remote areas are bolstered by new technologies, the governor added, along with microloans and risk management, that play into how China is looking to spread the virtual currency.

The coronavirus crisis has also accelerated the necessity for contactless banking, creating challenges for central banks looking to balance users’ needs and safety, he added.

While explaining on a virtual panel with the overall Manager at the Bank for International Settlements Agustin Carstens and therefore the President of the Dutch Central Ban Klass Knot, Yi added that safeguarding users’ private information is challenging.

According to a Reuters report recently on Monday, Yi played down the prospect of an imminent launch, saying the digital yuan project remains within the early stages.

China must still develop a “fairly complicated and fairly complete legal framework,” he added, particularly around transparency.

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