The People’s Bank of China (PBoC) is continuing its research into the central bank digital currency (CBDC).
PBoC Still Studying CBDC
Central bank-issued digital currencies have been a hot topic of discussion within the cryptocurrency and fintech sector for the past few years. China has been at the forefront of CBDC development as the country seeks to roll out a digital currency that would make transactions easier for the people.
The People’s Bank of China organized a teleconference on April 3 in Beijing, where the issue of CBDC was one of the main talking points of the event. The PBoC highlighted that it is still going on with its research and development of its CBDC.
The teleconference discussed the achievement of the central bank so far regarding fiat currency, gold, silver, and securities since the start of 2020. The PBoC executives talked about the challenges currently facing the central bank and pointed out that their main focus is to continue the research and development of their CBDC.
One of the executives was quoted as saying that the leading priority at the moment is to boost the top-level system design and enhance the research and development of the CBDC. The PBoC is also working systematically to promote the reform of cash issuance and return systems, and to accelerate the promotion of the banknote processing business as well as the issuance of bank guards and funds.
China’s PBoC has been one of the leading central banks in terms of CBDC research and development in recent years. The country has been working hard on developing a digital yuan as a means to move into the future and change the country’s financial ecosystem.
Earlier this month, the People’s Bank of China completed the essential function of the development of the CBDC. This brings them a step closer to finishing the development of the digital yuan and issuing it to the populace.
The Chinese central bank has been able to accelerate the development of its digital yuan as a result of the involvement of several private companies in the country. According to several reports, private entities such as Alibaba, Tencent, Huawei, and China Merchants Bank have played crucial roles in the development of the digital yuan so far. The PBoC chose these companies because of their vibrant blockchain and third-party payment experiences.
China’s Hostilities Towards Bitcoin and Other Cryptocurrencies Could Be for Digital Yuan
At one point, China was the leading country in terms of cryptocurrency users. However, the crackdown on cryptocurrency exchanges and other crypto-related events in the country made it tough for cryptocurrency companies. Thus, China’s dominance in cryptocurrency usage quickly disappeared.
The crackdown on cryptocurrencies in China could be due to the development of the digital yuan. The Chinese government might not want a situation where another cryptocurrency would be getting more attention from users in the country. Based on this, banning crypto exchanges and other crypto-related business could be a way of ensuring dominance for the digital yuan.
According to several reports, China believes that their cryptocurrency would be very crucial to giving the Chinese fiat currency the upper hand when it comes to international economic development. Regardless, it seems China is working hard to ensure that its CBDC is ready in no time.