China’s Central Bank Governor Says Digital Currencies Will Replace Cash, Regulated as Legal Tender

The governor of the People’s Bank of China, Zhou Xiaochuan, said in an interview that digital currencies will inevitably replace cash, but they will be regulated if used as legal tender.

Zhou noted that the PBOC has been examining digital currencies for some time. He indicated that physical cash is “low-tech” and that rapid development of Internet-based global payment systems necessitates the creation of digital currency, which he believes will improve financial infrastructure and economic quality and efficiency.