China’s national digital currency, formally known as the Digital Currency Electronic Payment (DCEP) will not seek to replace globally accepted fiat currencies like the dollar and the euro, said Zhou Xiaochuan, the former governor of the People’s Bank of China. Zhou’s words were reported in the South China Morning Post.
“If you are willing to use it, the yuan can be used for trade and investment,” he said, speaking at the Shanghai Financial Forum. “But we are not like Libra and we don’t have an ambition to replace existing currencies.”
However, the South China Morning Post reported that the country’s digital currency could act as a boon to cross-border trading with China and could “promote the yuan as an international currency.”
