China central bank studying digital currency

The People’s Bank of China set up a research team in 2014 to study digital currencies and application scenarios, according to a statement posted on the regulator’s website. The PBOC said it has consulted with experts from Citigroup and Deloitte, though it did not specify what technology it would be using to issue its digital currency or how it would work in relation to the CNY.

An estimated USD 843 billion of capital flowed out of China in the 11 months through November 2015, according to a Bloomberg estimate, and policy makers are having to add funds to the financial system to prevent interest rates rising amid an economic slowdown.

The Philippines is already trying to use blockchain technology that underpins bitcoin to issue its own digital currency.