China Central Bank Is All Determined to Pursue Its CBDC Project
China’s central bank - People’s Bank of China (PBoC) - has given strong signals that it is all determined to pursue it central bank digital currency (CBDC) project as it is moving ahead towards launching its Digital Yuan.
The central bank has released a summary of the 2020 National Currency Gold Silver and Security Work Video and Telephone Conference held last Friday led by PBoC vice governor Yifei Fan. The central bank said that the CBDC would be one of their top priorities ahead this year.
In a statement released last week on April 4, the bank wrote: “The People’s Bank of China (PBoC) will undoubtedly further its research and development of the national digital currency with enhanced top-down design”.
China’s plans launching its own CBDC have been in place since the last year, however, things were going at a steady pace until now. But an unequivocal affirmation for the digital yuan in the annual meeting indicates that China is looking to accelerate the process of its CBDC launch.
This comes just at a time when the global economy is facing massive risks of slowdown and facing uncertainty due to the Coronavirus pandemic which has affected several countries around the globe.
With the global economic outlook not so strong, China accelerating its CBDC could be step in enhancing its position for dominating the world economy and thereby leaving the U.S. behind.
As per other reports, China’s digital currency will come in a two-tier functional system. The central bank will work as the currency issuer while other commercial banks under its regulation will look after the consumer distribution.
Last month in March, China said that it was one step closer in releasing its central bank digital currency (CBDC). Reportedly, PBoC has been already working with local private Chinese companies and they have completed some basic functions of the sovereign digital currency.
An industry insider familiar with the matter said: “Judging from the patents, the first step of technological development has been basically completed”.
Recently, a researcher from the Bank for International Settlements (BIS) said that the Coronavirus outbreak can provide an opportunity for the digital currency industry. It will boost the digital payment adoption and inspire more central banks across the globe to participate.