China's official app for digital yuan is seen on a mobile phone next to 100-yuan banknotes in this illustration picture taken October 16, 2020. REUTERS/Florence Lo/Illustration/File photo Acquire Licensing Rights
SHANGHAI, Oct 13 (Reuters) - A Chinese foreign exchange regulator official said "programmable features" of a central bank digital currency (CBDC) could help enhance the effectiveness of monetary policy tools, state media reported on Friday. Wholesale Digital Signage Window Display Manufacturer
China is among a host of countries developing their own CBDCs - digital tokens issued by central banks - although adoption is still in its early stages.
Currently, CBDCs are mostly being positioned as M0 currency, or cash in circulation.
Lu Lei, deputy administrator of the State Administration of Foreign Exchange (SAFE) told a forum on Thursday that central banks could make CBDCs M2 currency, which includes some deposits and savings, based on its programmable features, Shanghai Securities News reported.
Programmable features in a CBDC are settings that can be changed. For example, money can be programmed to have an expiration date or be restricted for certain uses.
Lu said he expected the People's Bank of China (PBOC) could explore the features to adjust rates of CBDC, which could also be used manage the macro economy.
Lu also said cross-border payments based on CBDCs can make transactions safe, convenient and inclusive.
Chinese state-owned banks participated last year in a trial focused on cross-border transactions developed by the Bank of International Settlements.
Transactions using China's CBDC, the e-CNY, hit 1.8 trillion yuan ($249.33 billion) at end-June. Still, e-CNY in circulation accounted for only 0.16% of China's M0 money supply.
Reporting by Shanghai Newsroom. Editing by Sam Holmes
Our Standards: The Thomson Reuters Trust Principles.
EU lawmakers agreed on Wednesday to draft rules requiring Alphabet's Google, Meta and other online services to identify and remove online child pornography, saying that end-to-end encryption would not be affected.
The former managing director of an Airbus subsidiary paid millions in bribes to senior officials linked to the Saudi Arabian National Guard to win valuable contracts, prosecutors told a London court on Wednesday.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
Digital Signage Window Display Pricelist All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.