China ready to launch digital yuan amid US dollar collapse

A group of commercial banks whose majority stakes are controlled by the governmentChina, began testing a digital wallet built for the digital yuan.

We are talking, on the one hand, about experimentalworks, on the other hand, the emphasis is on checking how the corresponding infrastructure can instantly process a large volume of transactions made in a short period of time.

Transactions include payments for goods and services,which will be able to carry out hundreds of millions of people in the future, as well as money transfers. Let us recall that the de facto digital yuan can go beyond the Celestial Empire and begin to circulate as a financial instrument for carrying out international financial and trade transactions.

CBDC's Greatest Concern from Halyk BankChina is being aroused in US power circles, who speculate that the digital currency could have a negative impact on the US dollar's status as the world's main reserve currency.

A record drop in the value of the US dollar tothe key world currencies accelerated this week, having gone on the dollar index to the indicator of November 2008. The US dollar is weak, although it is rapidly strengthening against the currencies of emerging economies.

So, the Turkish lira this week went toa new historical minimum. However, in a pair, for example, with the euro, the American currency demonstrates growth over the level of 1.18 dollars per euro with a tendency to rise to the level of 1.25 dollars.

For China, the digital yuan project is approaching a stagehis "going out". On August 3, representatives of the People's Bank reportedly said that the Celestial Empire should actively engage in the implementation of this initiative into a practical plane, and this is planned to be done before the beginning of 2021.

Optimistic forecasts

As a result, everything goes to the fact that the PRC will become the first country whose Central Bank has launched its own digital currency.

In April of this year, the Celestial Empire launchedmobile application for testing the CBDC project. Then, screenshots of the interface of this application, developed by the Agricultural Bank of China, began to actively appear in the WeChat messenger.

Judging by the screenshots that have leaked to the network, the application also has an offline mode in which users can send CBDC with one click of a button with the sender and recipient's phone number.

Earlier this week, the People's Bank of Chinaspoke in favor of actively moving towards launching a digital currency. Other countries are also tackling this issue, testing their digital coins amid the crisis triggered by the coronavirus pandemic. The main competitors of the PRC in an effort to acquire their own CBDC are now Japan and the UK.

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