China Is The Closest To Issuing a Central Bank Digital Currency Than Any Other Country

In an interview with Phoenix Chinese news Circle CEO Jeremy Allaire has said that China is the closest to getting a Central Bank Digital Currency (CBDC).

The central bank digital currency (CBDC) is a new form of money issued digitally by the People’s Bank of China (PBOC) and to serve as legal tender, a country’s sovereign currency. It has no physical form like cash, but is backed by the reserves of valuable assets that commercial institutions deposit in the central bank.

On stablecoins in general, the CEO said:

“For us, we’ve been working for multiple years on the US Dollar coin that’s been growing very fast. And I think that we’re excited to see how things like the Chinese central bank digital currency could eventually interact or be traded with things like US Dollar coin.”

The People’s Bank of China is allegedly setting up its first-ever CBDC with Alibaba, online retail giant, Tencent, Internet Giant, five financial associations and one unknown element.

Huang Yiping, director of the Institute of Digital Finance at Peking University, said:

“If China successfully issued the world’s first CBDC, it will promote other countries to accelerate relevant studies and join the competition of creating CBDC.”

Additionally, the nation is right to step its foot into digital currency space before the end of the current year as the national bank is practically ready with the eagerly anticipated launch of its Facebook’s Libra-motivated digital currency.

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Author: Sritanshu Sinha

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