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Digital CNY to grow retail payments and prevent USD dominance

Friday 30 October 2020 15:20 CET | News

A former governor of the China-based central bank has addressed the sovereign digital currency issue, the digital CNY being designed to grow retail payments at home and prevent USD dominance.

According to scmp.com, the governor who led the People’s Bank of China from 2002-18, stated that China worked hard to establish its digital currency and electronic payment (DCEP) system, but its focus differed from G7 principals. In a report released in October 2020, the G7 said stablecoins need to be appropriately supervised to prevent threats to global financial stability and ensure they were not used to fund illicit activities or tax avoidance.

China thinks that digital currencies have to respect exchange regimes and currency sovereignty. However, a major factor in Beijing’s digital currency plan was to prevent the US dollar to be used in parallel or instead of the local currency. China’s central bank gets closer to the launch of its sovereign digital currency after it published a draft law at the end of October that would give legal status to the DCEP system, and including the digital yuan as part of the country’s sovereign fiat currency.


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Keywords: China, digital yuan, digital CNY, retail payments, stable coins, digital currency, bank of china, DCEP, electronic payment
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: China
This article is part of category

Blockchain & Cryptocurrencies