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- A key topic that is spoken about and not within the control industry is that of central-bank digital currencies.
- Of the course of this year, China has been particularly thorough with developing its own so-called “digital yuan” which will allegedly favour its domestic retail system.
A key topic that is spoken about and not within the control industry is that of central-bank digital currencies. Of the course of this year, China has been particularly thorough with developing its own so-called “digital yuan” which will allegedly favour its domestic retail system and help prevent the dollarisation of the economy according to a former official of the people's bank of China.
The former governor of the PBOC and current president of the Chinese finance Association, Zhou Xiaochuan attended a forum conference this week on the 27th of October we said that central banks are focusing on creating a digital currency that will be considerably different from that of other countries in these so-called “Group of Seven“. This includes France, Italy, Japan, the United States, the United Kingdom, Canada, and Germany.
According to the president and former governor, the group of seven is primarily concerned with the “challenges raised by Libra, bitcoin and similar digital encrypted currencies“.
All this comes whilst the central bank of China is looking into using its digital currency for retail payments in a domestic fashion to prevent the United States dollars from becoming a more common medium of exchange in the nation. Xiaochuan further went on to say:
“In China, we’ve [been working] very hard to push the DCEP and the electronic payment. However, the focus and the major point of our concept and the content are different from the G7 principle.../ We [need] to prevent dollarization. This is one of the major designing points of the Chinese DCEP.”
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