The digital yuan, a simple complement to fiat currencies – China seems to want to reassure about these intentions with the crypto-yuan . Libra’s turnaround following the strong reactions to the initial project has clearly marked the spirits. China is thus deploying a vast communication plan: rest assured, the digital yuan would not be a threat.
The monetary system has nothing to fear from the crypto-yuan
At the Shanghai Financial Forum, Zhou Xiaochuan , Governor of the People’s Bank of China (PBoC) until 2018, asserted that China has no plans to replace existing fiat currencies with its digital currency. The crypto-yuan would simply be designed to facilitate cross-border payments. The PRC appears to have learned from the Libra experience and concerns about the project:
“ If you are willing to use it, the yuan can be used for trade as well as for investment […]. But we are not like Libra and we do not have the ambition to replace existing currencies. “
Le crypto-yuan, Libra or not Libra ?
According to Zhou Xiaochuan, one of the main advantages of the crypto-yuan would be to allow both payments and currency conversions in real time . This statement clashes with the claim that the crypto-yuan is unlike Libra.
Libra’s original ambition was the same as the crypto-yuan: to create a currency backed by fiat currencies and exchangeable against them at any time. It would therefore be more correct to differentiate Diem and the crypto-yuan, after the reversal of the project.
This slight inconsistency recalls the sentence of the German Minister of Finance about the Diem : „A wolf disguised as a sheep remains a wolf“. China therefore seems to be continuing its crypto-yuan evangelization campaign in parallel with the development of the underlying technical elements.