A new head of the digital currency division has appeared in the Chinese central bank, saying that the new digital yuan has functions that are not available in Libra and is technically more advanced.
Previously deputy director of the payment and settlement department at the People’s Bank of China, Changchun Mu took a leading position at the Digital Currency Research Institute.
Recently, Mu recently published detailed information about Chinese cryptocurrency, describing it as a digital currency and a tool for electronic payments with “value characteristics”.
“Its functional characteristics are exactly the same as fiat money, only in digital form,” said Mu.
He outlined some technical aspects of digital currency and compared it with the Libra project from Facebook.
The digital yuan can be transferred between users without an account and without a mobile or Internet network. If a wallet is installed on the user's mobile phone, the digital currency can be transferred to another person by physical contact of two phones. Presumably, this feature is available thanks to NFC technology.
“Even Libra cannot brag of it,” said Mu.
"Chinese digital currency does not need a bank account and it is free from control of the traditional system of bank accounts," said Mu. According to him, this allows users to maintain confidentiality when using the system.
However, digital currency will be available through commercial banks like fiat currency. Banks must open an account with the People's Bank of China and buy a token at full face value.
Mu added that the main reason for creating a digital currency is “future planning” to protect the monetary sovereignty and legitimate currency of China.
In July, former head of the People’s Bank of China Zhou Xiaochuan said that "Libra introduced a concept that will impact the traditional cross-border system of doing business and payments."