China could be the first country to officially launch a central bank-backed digital currency after it is aiming to develop the digital currency to help ease the US sanctions that would harm the country’s currency. Cao Yin, a versatile member of the blockchain industry in Beijing who said the country was aiming not only to evade US sanctions but also to use the digital currency to pay the population of the nation the proposed post-COVID-19 stimulus checks.
US-China feud.
The United States of America and China are presently in a scuffle over the Coronavirus pandemic with US president, Donald Trump pointing accusing fingers at China over the way they are tackling the virus. After the war of words between both nations, the US swiftly added about 33 Chinese industries in the country to its list of blacklist companies. China’s foreign entourage has shown its displeasure over the development, saying it is a ploy by America to frustrate Chinese companies out of the country.
Even though Chinese financial houses were unaffected by the sanctions, Yin said he believes that the US sanction still posses massive threats to China and its economy. The next move could affect the country’s currency, Yuan. “In light of the new development on the clampdown on Chinese firms by the American government, the Chinese digital currency might be in play sooner than expected.
Chinese CBDC will be launched soon.
China recently announced that it is making all possible efforts to laugh the digital currency on time after Facebook backed Libra project was announced. The libra is a stablecoin that held massive values against many fiat currencies across the globe. The country has been making moves to launch its CBDC that has been in the development stages for five years. Launching of the Chinese CBDC is set to occur after the country did a test of the currency in four states that included Shenzhen, Suzhou, Chengdu, and Xiog’an which is a district in Beijing.
Head of the people’s Bank of China, Yi Gang has said that even though they have started the pilot test, no date has been chosen for the official launch while stating that the bank developers are working on making it a possibility ok the nearest weeks. “We are working tirelessly to make the launch happen before the year so we can out the digital asset into good use and evade whatever the US is plotting against us,” the president said.
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