Sun. Aug 7th, 2022

Just a few months ago, the big news out of China was the announcement from the PBOC was the introduction of a digital Yuan.  In August the EconomicTimes reported that he People’s Bank of China is “close” to issuing its own cryptocurrency, according to a senior official.

China’s Central Bank

The bank’s researchers have been working intensively since last year to develop systems, and the cryptocurrency is “close to being out”, Mu Changchun, deputy director of the PBOC’s payments department, said at an event held by China Finance 40 Forum over the weekend in Yichun, Heilongjiang. He didn’t give specifics on the timing.

China has delayed its research on launching a government-backed Digital Currency Electronic Payment as the country continues to battle the increased coronavirus outbreak. This does not mean that China will not launch the sovereign digital currency this year, Global Times reported Tuesday.

Nobody could predict the viral epidemic spreading across China as it spreads to the rest of the world. The outbreak has quickly become a global concern. The Chinese government has already taken extreme measures to not only contain the virus but also to fight and ensure economic recovery as GDP is being trashed. However, business’s continuing to suffer greatly because, in quarantined areas, people are required to stay at home.

Economic Impact

Yesterday according to South China Morning Post, President Xi Jinping has acknowledged the ‘unavoidable’ impact of the coronavirus epidemic on China, but implored local officials to resume production where possible

Xi’s comments come as concern grows that the economy could be dragged into a deep slowdown, threatening the country’s 2020 development goals

A few weeks ago, mining rig manufacturer Microbat announced a delay in shipments due to the virus leaving miners in difficult situation. the 3Logic company disclosed that Innosilicon and Bittman would be delaying mining rig shipments as well.

Special Funding

According to Bloomberg China’s central bank will release a set of funds intended to combat the coronavirus this week and will begin to offer the service on a weekly basis soon. So far, there are nine major national banks and some local ones that qualify for the special funding, according to PBOC Deputy Governor Liu Guoqiang, that those institutions should be prepared to speed up loan applications and also to release them within two days.

PBOC said the funds will be earmarked for activities and production related to fighting the coronavirus. Banks and institutions will have to offer loans from special re-lending funds at up to 100 basis points below the one-year Loan Prime Rate, according to the directions from PBOC. (PYMNTS.com)

Earlier this week Apple announced that it does not expect to meet its quarterly revenue forecast because of lower iPhone supply globally and lower Chinese demand as a result of the coronavirus outbreak.

According to CNBC Apple makes most iPhones and other products in China. The Coronavirus has caused it to temporarily halt production and close retail stores in China. Some Apple retail stores reopened in China with reduced schedules last week.

By Gerelyn