Lu Lei: The future digital yuan will have the attributes of commercial bank liabilities, possessing the functions of a monetary unit of account, store of value, and cross-border payment.

On December 29th, according to the *China Financial Times*, Lu Lei, Vice Governor of the People's Bank of China (PBOC), recently published an article stating that the future digital yuan will be a modern digital payment and circulation tool supported and fully regulated by the PBOC, possessing the attributes of commercial bank liabilities, based on an account system, and compatible with distributed ledger technology.

Its issuance and circulation will rely on the existing financial system, while fully possessing the core functions of currency, including value measurement, value storage, and cross-border payment.

The article further emphasizes that, looking to the future, the digital yuan's choice of business model and technological path will always be fundamentally guided by serving the needs of the real economy.

A strategy of inclusiveness and prudent evaluation will be adopted for different development paths of account-based and value-based digital currencies to ensure that the digital yuan can flexibly adapt to the diverse needs of various scenarios and different business entities, providing them with safe, efficient, and inclusive payment solutions.

Previously, it was reported that the PBOC was about to release the *Action Plan on Further Strengthening the Management and Service System and Related Financial Infrastructure Construction of the Digital Yuan*.

The formulation and implementation of this plan are expected to provide important policy support for the standardized operation, systematic promotion, and infrastructure improvement of the digital yuan, further promoting the sound development of my country's legal digital currency system and contributing to the modernization of the payment system and the digital transformation of finance. (Source: PANews)