China Needs to Shatter the Hegemony of the US Dollar, suggests PBOC
China’s yuan may challenge the dollar dominance as the central bank of China is determined to issue state digital currency as soon as possible.
First Country to Issue a Digital Currency
An article is published about the digital yuan in the magazine China Finance which is led by the People’s Bank of China (PBOC). The article states that China needs to issue a digital currency and become the first country to have state-owned cryptocurrency. Moreover, it also explains that the digital yuan will threaten the hegemony of the US dollar.
“China has many advantages and opportunities in issuing fiat digital currencies, so it should accelerate the pace to seize the first track,” the article reads. The sovereign countries will definitely engage in a competition in the race to issue and control digital currency on international level. However, the issuance of digital currency on a state level would change the financial infrastructure.
Testing of Digital Yuan
In August, China announced the testing of digital yuan in Beijing, Hong Kong, Shanghai, and Guangzhou. In this trial run, nearly 400 million people are involved which comprised 29% of China’s population. What’s more, the People Bank of China has also plan to use the digital currency in the Olympic Games which will conduct in 2022.
Most of the commercial banks led by the government have started the trail of digital wallets, local media reported last month. The article by PBOC also states that digital currency would assist in monetary policy transmission. Ultimately, it would help in the financial recovery after the Coronavirus pandemic.
As the end of April, the digital currency research unit of PBOC has filed 130 cryptocurrency-related patents including the circulation, issuance, and application of digital currency. However, a report published last week revealed that the United States leads the position in a filing large number of patent applications for blockchain besides Alibaba’s patents.
China started to work on digital yuan a long time ago as the research unit of PBOC was established in 2015. But the project has gained speed after the Coronavirus pandemic.
Tokenhell produces content exposure for over 5,000 crypto companies and you can be one of them too! Contact at info@tokenhell.com if you have any questions. Cryptocurrencies are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by Tokenhell authors (namely Crypto Cable , Sponsored Articles and Press Release content) and the views expressed in these types of posts do not reflect the views of this website. Tokenhell is not responsible for the content, accuracy, quality, advertising, products or any other content or banners (ad space) posted on the site. Read full terms and conditions / disclaimer.
