Bitcoin News and Finance
Digital Yuan to Promote International Use of Chinese Currency, Experts Say Skip to main content

Digital Yuan to Promote International Use of Chinese Currency, Experts Say

Digital Yuan to Promote International Use of Chinese Currency, Experts Say

The new digital yuan, currently undergoing trials, can help to increase the international usage of China’s national fiat, experts have stated. As the renminbi (RMB, CNY) is becoming one of the world’s most important currencies, the People’s Bank of China is planning to conduct cross-border tests with the yuan’s digitized version, the e-CNY.

Digital Yuan to Facilitate ‘Renminbi Internationalization’

The digital yuan will further promote the process of “internationalization” of the renminbi, Chinese experts believe. This can happen when the Chinese yuan becomes the world’s third-largest currency — in terms of pricing, settlement, and international reserves —current and former officials said Wednesday, quoted by the China Internet Information Center portal.

Digital Yuan to Promote International Use of Chinese Currency, Experts Say

The e-CNY, arguably the most advanced central bank digital currency (CBDC), is still being tested primarily in domestic retail payment trials. However, cross-border e-commerce could provide the next use case scenario for the “natural and particularly easy to accept” digital yuan, thinks Tu Yonghong, deputy director of the International Monetary Institute (IMI) at the Renmin University of China.

According to Wei Benhua, former deputy director of the State Administration of Foreign Exchange, the future implementation of the e-CNY in international payments will not only promote the RMB but can also influence the reform of the global monetary system. At the same time, he stressed that a consensus would be needed on new rules and standards for the sovereign digital currency.

The digital yuan is “technically ready” to facilitate cross-border transactions, the Chinese publication notes. The People’s Bank of China (PBOC) has recently confirmed its intentions to explore options to launch pilot programs for cross-border payments with the e-CNY.

The improvement of cross-border payments is one of the goals set by the PBOC in the e-CNY whitepaper, the report remarks. The Chinese central bank will work with counterparts and monetary authorities around the world to establish regulatory mechanisms and exchange arrangements for its digital currency.

In early June, financial authorities in Hong Kong announced they are going to connect the region’s domestic payments network to the Chinese digital yuan system in order to evaluate the currency’s usability in cross-border transactions. The test is part of a second round of trials following initial small-scale experiments with digital yuan wallets.

The RMB International Index, an indicator reflecting the level of internationalization of the Chinese currency published by the International Monetary Institute, rose to 5.02 points at the end of last year, from just 0.02 a decade ago. The IMI claims the RMB’s international usage has surpassed that of the Japanese yen and the British pound during the first half of 2020.

Do you expect the e-CNY to increase the importance of the Chinese yuan as an international currency? Share your thoughts in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory