China announced plans to permit foreigners and athletes to use the recently created digital yuan in the 2022 Beijing Olympics. The nation’s regulator and central bank would spearhead the new plans and facilitate the digital yuan usage during the commencement of the winter Olympics. One of the bank’s top officials revealed this good news, and sources claim that the opportunity would promote the digital yuan’s use within the nation.
The central bank’s deputy governor, Li Bo, explained that the 2022 winter Olympics would allow the country to test the central bank’s digital currency with foreigners. The country had announced its CBDC creation in 2020, and this has encouraged many countries to make a similar move.
PBoC to allow foreigners to use CBDC
The central bank official shared how the bank worked to facilitate the CBDC for other users asides from its citizens for the coming sports event. The financial expert revealed this information at the Boao Forum for the continent. In late 2020, China shared that it was going to commence trials for the virtual currency during the Olympics, allowing the nation to involve foreigners.
While explaining the plans, the deputy clarified that the central bank did not create the CBDC to replace the US dollar, which is known to be one of the most widely spent currencies globally.
Bo clarified that the PBoC made the central bank digital currency for its citizens and not focused on global consumption. He explained that the internationalization of the currency would come naturally and that its creation was not to replace the American dollar.
Bo opined that CBDC’s creation is to allow the market to choose while facilitating investment and trade. It’s safe to note that the digital yuan’s focus is on domestic use, but it could have foreign uses, such as facilitating cross-border payments.
China prepares to create a cross-border solution
Li Bo spoke on the central bank’s plan on going global by facilitating cross-border payments. He explained that the bank was working with its partners to find a solution for international payments. Interestingly, the official opined that the regulator sees Bitcoin as an investment alternative.
Bitcoin, which is one of the most popular cryptos, has a controversial relationship with China. Still, China has gone through many processes for the launching of its CBDC, and it finally completed the creation in late 2020. Since then, the nation has been working on a cross-border payment solution that would allow people to make payments abroad.
Recently, the country’s central bank’s director of research, Wang Xin, revealed that the nation had complete its first pilot on cross-border payments. The region also explained that the virtual currency would not replace paper money. PBoC revealed that it doesn’t plan to replace currencies, and that includes the US dollar.
Some rumors broke out during the early days of the digital Yuan creation that China plans to replace the dollar as the world’s reserve currency. The financial regulator has explained that it has no intention of replacing the dollar.
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