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China’s Approach towards Friendlier Digitization

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China’s Approach towards Friendlier Digitization

China has taken an open-arms approach towards central bank digital currencies (CBDCs). According to Jeremy Allaire, CEO of Circle, the central bank of China has adopted friendly measures towards CBDCs. Mr. Allaire was speaking to Phoenix Chinese News. 

Green Light for Digital Currency 

The People’s Bank of China is reportedly the only international central bank that has taken a rather analytical approach to digital currencies. Allaire stated that China’s leading bank is one of the most vital banks in the world to be announcing the launch of its digital currency. He was also vocal about the public bank’s CBDC stablecoins pegged to the US dollar. The pegging of China’s CBDC to the US dollar is a monumental step towards digital adaptation in the country.

Binance Research recently published a report stating that a bank account isn’t a necessity for China’s CBDC, a move guaranteed to ensure mass adoption. Users of China’s CBDC would be able to process transfers without owning a bank account thanks to the currency’s loose design system. This system provides user anonymity while making transactions and also boasts of a CBDC turnover rate equivalent to local currency. The news of Renminbi’s internationalization and dispersion of the currency with talks of adopting smart contracts is also doing its fair share of rounds. 

There has also been an ongoing reports about the People’s Bank of China setting up its first CBDC with the online giant, AliBaba, Tencent, five major banks and an unknown organization. According to a local news report on 20 August, the People’s Bank of China was ready for the launch of its first state-backed digital currency influenced majorly by the launch of Facebook’s cryptocurrency Libra in June 2019.

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I am a content writer with interests in life sciences and blockchain. I believe that blockchain has the potential to transform every aspect of human endeavor. I love surfing the internet, reading, learning new things, and trying new cuisines.

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