Photo: VCG

Refuting media reports of launching a national digital currency in November, China's central bank termed press reports as an "inaccurate speculation."

Information including launch time and participating institutions circulated online since the end of August are "inaccurate speculations," said the People's Bank of China (PBC), according to a statement issued on China's official rumor refuting platform piyao.org.cn on Saturday.

The clarification came after speculations said that the PBC will launch a digital cryptocurrency as early as November 11, and the cryptocurrency will be issued to China's four biggest commercial banks, Alibaba, Tencent and UnionPay in the initial stage.

Work progress of digital currency will be issued in due time, the central bank said, asking the public to follow the official notice.

The clarification also noted the essential difference between China's digital currency and virtual currencies like Bitcoin, saying the PBC's digital currency is legal digital currency that will be backed by state credit.

The PBC's new digital currency is also different from current e-wallets or online payment. The new digital currency will not replace current yuan system. It's a digitalized yuan, according to the statement.

The PBC will introduce a two-prong operation system for the digital currency, adopt a centralized management model, and continue to use a current operation structure for cash services, which is through joint efforts of the PBC and commercial institutions, the statement explained.

China's new digital currency will be convenient for circulation like cash. It can be used in small amounts in retail business scenarios, and ease people's payments in daily life, the statement added.