SINGAPORE (July 17): Besides the absence of a central authority, another attractive attribute of blockchain-based cryptocurrencies is the speculative element where prices go through big, frequent swings. China, for obvious reasons, will make sure there are neither attributes with e-RMB.

Instead, PBOC will likely adopt a centralised model based on this technology, which gives it greater oversight over transactions. Like central bank-issued fiat currency, e-RMB does not require a basket of assets to support it. 

And of course, e-RMB is not for punters to play around with as well. “The digital yuan is used for spending, not for speculation,” says PBOC currency head Mu Changchun in a Shanghai Securities report, taking a leaf from a famous 2017 warning by President Xi Jinping that houses are meant to be resided in, and not for speculation. “It does not have the characteristics of bitcoin speculation, nor does it require a basket of assets to support its value like stablecoins,” he adds.

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