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What advantages would China’s CBDC have over the global financial sector? 

What advantages would China’s CBDC have over the global financial sector? 

Quick take

1 minute read

  • Central-bank digital currencies are being looked at thoroughly by many central government bodies all over the world. 
  • This past year has been a big one for this kind of asset and project, with China seemingly going to be the first bank to launch a digital currency tethered to its central bank. 

Central-bank digital currencies are being looked at thoroughly by many central government bodies all over the world. This past year has been a big one for this kind of asset and project, with China seemingly going to be the first bank to launch a digital currency tethered to its central bank. 

Even though the Bahamas is actually set to release its own CBDC next month, China is still racing to release its own digital yuan.

What exactly would a CBDC bring to the table? 

Well according to a report from Reuters earlier this week, the benefits of a digital currency of such a nature would be the weakening of the dollar's role in global finance and would instead favour the yuan.

Depending on your political views, this can be both good and bad but according to China finance, they have said that the ability to issue and control a digital currency will bring in a new area of competition and a so-called “battlefield” between countries. I don’t know if this is a good thing or bad thing but in terms of cryptocurrency in the advancement of technology, it can only bode well.

To add to this, another advantage of a digital currency backed by China central-bank would be the better feedback of payments data and could help better promote monetary policy in the financial sector. With coronavirus still attacking some of the biggest nations in the world at full force, they believe that it would help economic recovery following the events of COVID-19.

 

 

 

It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

 

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice

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