Cryptocurrency, Economy, News & Updates

China-EU Cryptocurrency Trade Talk getting stronger amid COVID-19 Crisis

The European Union and China lately had trade and economic proposals contemplating matters, including central bank digital currencies (CBDC) and supply chain.

Throughout the video conference, according to the Ministry of Commerce of China, the two parties reviewed the strategic partnership of the steady improvement and growth of the global economy post-pandemic.

According to the official report, “a series of fruitful results and consensus have been reached in the negotiation of China-EU investment agreement,” including the extension of the digital economy and other financial partnerships.

The official announcement stated:

“The two sides agreed to strengthen cooperation in green finance and promote the convergence of standards. Agreed to strengthen information sharing and exchanges and cooperation in the fields of digital currency and financial technology.”

The Chinese leaders stated that the nation is looking forward to confirming a memorandum of agreement on bilateral administration collaboration and strengthening each other in developing global financial markets.

The European Union, nevertheless, stated that there would be more exchange needed from China before making further development. Executive Vice-President of the European Union Valdis Dombrovskis said:

“The current crisis gives us no other option but to work for hand in hand with our global partners, including China. By pulling together we can recover more quickly economically, and make progress on areas of mutual interest such as trade and investment relations. However, we also need to address sticking points such as reciprocity in the way our companies are treated. We will need to make further progress on these and other issues ahead of the next leaders’ summit in the autumn.”

The European Commission also stated that a range of regulatory issues in the financial services sector was presented, including participation in green finance and the international role of the Euro and the Renminbi.

Researching with central bank digital currencies, China’s central bank has been rolling out a central bank digital currency, also known as digital currency electronic payment (DCEP). The People’s Bank of China has often stated that its CBDC was ready; nevertheless, it is still being experimented. In May 2020, local government employees in the city of Suzhou have received China’s DCEP. The Suzhou municipal government employees will be receiving 50 percent of their transportation subsidies for May in DCEP.

The DCEP will be distributed to the employees by the nation’s four state-owned banks, including the Agricultural Bank of China, Industrial and Commercial Bank of China, Bank of China, and China Construction Bank. The employees were required to download digital wallets developed by the banks to receive their subsidies.

This year, Banque de France, the French central bank, started a program of experiments to examine out the potential central bank digital money aimed for interbank settlements. Possible associates have been invited to present their credentials to experiment with the digital euro.

Banque de France announced the eight successful applicants: Accenture, Euroclear, HSBC, Iznes, LiquidShare, ProsperUS, Seba bank, and Société Générale Forge. The three main goals of the CBDC experiment involves classifying privileges, analyzing possible risks, and modeling as CBDC-based interbank adjustment.

The French central bank will be working closely with the eight successful applicants to carry out the tests in the coming months.

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