China Moves Closer to Issuing Digital Currency

The People’s Bank of China (PBC) is speeding up its digital currency (CBDC) issuing plan, the Global Times reports.

The Bank of China in collaboration with several private companies has finalized fundamental functions’ development of the official digital currency. At present, it is working on projecting laws that will help to issue the digital currency.

Nowadays, central banks of different countries across the globe are cutting interest rates to zero to release liquidity into the market due to the COVID-19 pandemic. In these days, cryptocurrency seems to be the most convenient tool to solve these issues.

As the Global Times also noted, among the private companies taking part in the development of the digital currency are Alibaba, Tencent, Huawei as well as China Merchants Bank.

Managing director of Digital Renaissance Foundation, Cao Yan is confident that speeding up the CBDC project can serve to turn the crisis into an opportunity. He mentioned:

“If there is a chance China is considering lowering its interest rate into negative territory as an final option and directing such policy to commercial loans and lending, a circulated digital currency rather than M0 will be able to achieve that.”

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