China to use its digital currency at Beijing 2022 Winter Olympics

Digital Currency Will Be A 'New Battlefield' For Competing Between Countries
Digital Currency Will Be A 'New Battlefield' For Competing Between Countries

📩 22/09/2020 10:14

An article published in China Finance, a magazine run by the People's Bank of China (PBOC), argued that the rights to print and control digital currency will be a 'new battleground' for competition between sovereign countries.

The article stated that the issuance and circulation of the digital currency will bring great changes in the current international financing and it was stated that "China has many advantages and opportunities in exporting digital currencies".

According to the news reported by Reuters based on local media outlets, it was reported that some of China's major state-owned commercial banks have started to conduct large-scale internal tests of a digital wallet, and the official launch of the local digital currency is one step closer.

The China Finance article argued that enhanced data feedback from a digital currency would help improve monetary policy transmission that supports economic recovery in the post-epidemic period.

It is noted that the digital currency research unit of the People's Bank of China has made 130 patent applications for cryptocurrency from circulation to application by the end of April, and these functions will form a complete supply chain to support the launch of a digital currency.

Internal trials of the digital currency electronic payment system are under way in four cities in China, and it is planned to be used as a pilot at the Winter Olympic games venues. The People's Bank, China's central bank, set up a research team six years ago to explore the possibility of launching a digital currency to reduce the cost of paper money in circulation and increase policymakers' control over the money supply.

In the first quarter of 2014, the transaction scale of the local third-party internet payment market exceeded 1,800 billion yuan. The Central Bank started a forward-looking study on digital currency that year. Founded two years later, the People's Bank of China Digital Currency Research Institute became the world's first legal central bank digital currency research and development institution.

Hibya News Agency

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