The central People’s Bank of China (PBoC) verified that it is ready to take center-stage on a “new battlefield” of competition among sovereign nations based on digital fiats – and declares its new token could help tame “dollar dominance.”
The PBoC has been nearly cagey about its digital yuan project, which is already in high-level testing stages, but permitted itself a rare opportunity to discuss the importance of central bank digital currencies.
As reported by Reuters, the PBoC stated, in an official mouthpiece publication, that the “issuance and circulation of the [digital yuan] would bring great changes to existing international finance.”
The bank added,
“China has many advantages and opportunities in issuing fiat digital currencies, so it should accelerate the pace to seize the first track.”
Despite recent cautionary announcements, the PBoC claimed that China needed to establish “a new payment system network to break the dollar monopoly as a key part of yuan internationalization” – with the digital yuan the cornerstone in this effort.
The bank continued that “improved data feedback” from its CBDC would “help enhance monetary policy transmission,” boosting chances of a faster economic recovery from the coronavirus pandemic.
Subsequently, Shina stated that chief architect of China Information Fintech Chen Hong Hong told participants at the current China Beijing International Science and Technology Industry Expo that digital currency-compatible wallet apps would play a crucial role in allowing commercial banks to speed up the implementation, promotion, and adoption of the digital yuan.
As reported beforehand, a software developer that develops apps for commercial banks lately shifted the latest company to admit it was operating with the PBoC on its digital currency project.