18.05.2021

Former Bank of China President Says Digital Yuan Can Replace Cash

The central bank digital yuan is currently in the test phrase and is generating excitement among Chinese internet users. Searches on the impact of the digital yuan and cryptocurrency in general has skyrocketed in recent times.  

Former Bank of China President, Li Lihui, has revealed the launch of the digital yuan is imminent, and that the currency can replace cash if four key conditions are met.

Lihui gave a live streaming talk on People’s News on May 5 and explained that unlike WeChat Pay and Alipay, the digital yuan is designed to be independent from any network or third party bank. However, he said for the digital yuan to replace cash or other current payment solutions, four key conditions needed to be met:

“Whether the digital Yuan can become the dominant form of currency and mainstream payment means, depends on whether it has greater efficiency, lower transaction costs, enough economic scale with commercial value, and people’ acceptance.”

Different forms of digital currencies

Li believes if a currency uses digital technology, it can be called digital currency. He defines digital currency into three categories: legal digital currency (referring to Central Bank Digital Currencies or CBDCs), blockchain-based cryptocurrency, and trusted institution digital currency.

Crypto currency, such as Bitcoin is designed to be anonymous but transparent. The digital yuan, according to Li, also allows for technology that permits anonymous transactions. However, he added that limits would be placed on the frequency and amounts involved in anonymous transactions.

As Cointelegraph reported previously, the Bank of China has carried out pilot testing on the CBDC in different sites and it believes it will not cause inflation.

Former Bakkt CEO and Current US Senator Loeffler Sees 20% Approval Among Voters

Per a new poll of Georgia republicans released on April 29, Senator Loeffler (R-GA) seems to have a rough road ahead of her en route to the special election later this year.

Loeffler’s appointment and coming election

Georgia’s Governor Brian Kemp initially appointed Loeffler to her senate seat in December following Sen. Johnny Isakson’s announcement that he would retire at the end of 2019 facing declining health.

As she attained her seat by appointment rather than election, Loeffler will need to win a special election at the beginning of November to serve out the remaining two years of Isakson’s term.

According to the recent poll, Loeffler trails challenger, Congressman Doug Collins (R-GA) by 19 points.

Controversies surrounding financial ties

Loeffler’s former role as CEO of Bakkt as well as her financial ties have prompted accusations of improper conduct as a senator.

Loeffler is married to Jerry Sprecher, the CEO of the Intercontinental Exchange, the parent organization of both Bakkt and the New York Stock Exchange. Controversially, Loeffler and her husband sold off millions of dollars in investments following a closed congressional meeting discussing the U.S.’ coronavirus response on Jan. 24.

The senator subsequently promised to sell all holdings.

These accusations came just weeks after skepticism about Loeffler’s role on the Senate Agriculture Committee – which supervises commodities trading like that Bakkt engages in in the United States.

Cointelegraph reached out to Senator Loeffler’s campaign for comment on these new numbers but had received no response as of press time. This article will be updated pending a response.

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