China’s PBoC Places Central Bank Digital Currency Development As Top Priority
- China to focus on issuing its CBDC amid COVID-19 concerns. In a Teleconference by PBOC’s top brass, the executives all seem to align their objectives towards research advancements and possible issuance of the digital Yuan.
Reports have surfaced that China’s Central Bank has made strides towards realizing their Central Bank Digital Currency (CBDC). In a virtual meeting by the People’s Bank (PBOC) top brass, whose focal point seems to be the discussion around the ongoing developments of China’s digital Yuan.
Prioritizing the Digital Yuan
While the executives seem to share the sentiment that the digital Yuan would top their 2020 priorities they also discussed the status of the gold, silver and Fiat Currency that are at their reserves. Their main objective would be ensuring they get a top-notch system design and stick to the course of the research and advancements of the CBDC to streamline cash issuance and return methodologies.
“Accelerate the promotion of banknote processing business, issuance of bank guards and issuance funds.”
The boost from Private Sector Players
Despite COVID-19 concerns, China has been relentless on the road to issuing their digital currency. Notably the PBC has partnered up with titans in the private sector to bring them an inch closer towards their objective.
China is keen to leverage its advanced mobile payments companies. Alibaba’s Alipay and Tencent’s WeChat Pay boast of great market presence in China with a combined 1.7 billion user accounts which represent more than 300 million more than China’s estimated population. They have been able to integrate social media, eCommerce and payment systems all under one umbrella platform.
This was noted when Alipay, Alibaba’s financial wing, allegedly publicized patents that seem to overlap with the functionalities of the digital Yuan from Jan 21st – March 17th. This would include digital wallets, transaction recording, anonymous trading support, issuance and how to handle the issue ‘illegal’ accounts this is according to sources from China.