Merry Christmas to our favourite ninjas, how’s the trading going? On the day, the largest cryptocurrency Bitcoin is reporting 3.3% losses and is trading at $7,241 at press time. Ethereum is also reporting moderate daily losses, Ether is trading at $128 and is down 1.33%.
Mu Changchun, the deputy director of the people’s Bank of China (PBoC) explained that China’s new digital currency will function differently from Bitcoin and other stablecoins.
The news was reported by the Chinese news outlet South China morning post on the 22nd of December. Mu Changchun, head of the digital currency research at The People’s Bank of China explained that the new digital currency would be a digital form of the Chinese Yuan.
He further explained that the currency will function without the backing of a basket of currencies and would leave no room for speculation.
Mu Chang explained that China’s digital Yuan will function in a two-tier system, with the People’s Bank of China on top and commercial Banks in the second tier.
Meanwhile, the Central Bank of China is planning to conduct the first real-world test of its digital Yuan before the end of 2019, the digital token is set to challenge the United States Dollar.