Nation not in a hurry to develop digital currency, says central bank governor

China is in no rush to introduce a digital currency to prevent financial risks, the country’s central bank governor said on Friday.

“The central bank has started to conduct research on new technologies, but the development of digital currency will be a prudent process. It will be fully tested before introducing to the public,” Zhou Xiaochuan said at a news conference on the sidelines of the ongoing annual session of the 13th National People’s Congress.

He said the development of digital currencies was inevitable, but the government had a rather prudent view on whether the currency will be used for trading of virtual assets.

“We do not prefer speculative products that make people rich overnight. That is not a good thing,” he said.

The central bank has been conducting research to issue the country’s own sovereign digital currency, a move in parallel with similar efforts in other countries. Some trials have been made with large commercial banks last year.

Virtual currency trading of any kind is presently not permitted in China, as the supervisory bodies are serious about the ensuing risks. The central bank banned initial coin offerings last year as part of the effort to prevent risks, said Zhou.

He said future regulatory perception toward innovative fintech products will be “dynamic”, which means regulations will depend on the maturity of technology.

He said innovators should take cautious steps before introducing new products, and innovations should not go against the current stable financial order.