Fun

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

News Feed - 2021-07-30 05:07:01

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.



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. Bitcoin Rewards Firm Lolli Raises $10M in Funding Led by Acrew Capital, Social Media Moguls FINANCE | 1 day ago Ripple and SBI Collaborate to Launch On-Demand Liquidity in Japan — XRP Surges FINANCE | 1 day ago Tags in this story CBDC, China, chinese, CNY, cross-border payments, Currency, Digital Currency, Digital Yuan, e-CNY, experiments, Fiat, Hong Kong, international, international use, money, Payments, PBOC, People"s Bank of China, renminbi, reserves, RMB, Settlements, tests, trials, Yuan


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Bitcoin Scarcity May Spark Explosive Surge, Bank Study Shows
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Finder’s Poll Shows Vietnam Holds the Highest Percentage of Crypto Ownership Worldwide
Finder"s Poll Shows Vietnam Holds the Highest Percentage of Crypto Ownership Worldwide On Friday, the product comparison website Finder published the company&rsq
Czhang Lin Explains the Investment Strategy of LBank Labs in Web3
Czhang Lin Explains the Investment Strategy of LBank Labs in Web3 LBank Labs is the venture capitalist and blockchain accelerator arm of global crypto exchange LBank.
Crypto Voucher, a Thoughtful Crypto Gift for Your Loved Ones
Crypto Voucher, a Thoughtful Crypto Gift for Your Loved Ones Christmas, New Year’s Eve, or any other occasion when it is a time for giving and showing that
XRP Bull Targets $2.80 Breakout — Key Levels To Consider
Este artículo también está disponible en español. According to data from CoinMarketCap, XRP recorded a substantial price decline in the past trading week losing 16.78% of
Infinity8.io and Sacha Jafri Make NFT History at amFAR 2021
Infinity8.io and Sacha Jafri Make NFT History at amFAR 2021 sponsored As cameras flashed at tonight’s 27th amFAR gala at the Cannes film festival in the sou
XRP To End 7-Month Consolidation After 700% Surge – Is A Major Move Coming?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Best AI Agent Coins to Buy as Investor Hype Remains Steady on AI Industry
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
William Suberg8 hours agoBitcoin traders say BTC price will soon break beyond $31K yearly highsBTC price sideways trading is not dampening the optimism of Bitcoin traders prior to a giant options open interest expiry.312
L2 Scaling Startup Optimism Reveals Governance Collective, Native Token, and ‘Many Airdrops’
L2 Scaling Startup Optimism Reveals Governance Collective, Native Token, and "Many Airdrops" The layer two (L2) Ethereum scaling project Optimism has announced the launch of Optimi
SWIFT declares second sandbox connector tests a success for CBDC and more
Derek Andersen2 hours agoSWIFT declares second sandbox connector tests a success for CBDC and moreHaving shown the application of its connector in complex use cases, SWIFT will continue to increase the connector’s func
Fed President Warns of ‘Disastrous Results’ if the Fed Loosens Policy Prematurely — Says ‘Inflation Remains Too High’
Fed President Warns of "Disastrous Results" if the Fed Loosens Policy Prematurely — Says "Inflation Remains Too High" Federal Reserve Bank of Atlanta’s president has warned