April 25, 2024

CCIEE: “China's Central Bank to be the first to issue sovereign digital currency”

Vice Chairman of the China Center for International Economic Exchange (CCIEE) Huang Qifan) stated that the People's Bank of China was the first in the world to issue state cryptocurrency.

He stated this at the summit in Shanghai, which was held from October 27 to 29. Financial experts discussed issues related to money management, as well as to financial and latest technologies.

In his speech, Juan Kifan emphasized thatFacebook's Libra digital currency will not be able to develop successfully. He justified his opinion by the fact that decentralized cryptocurrencies have nothing to do with digital sovereign currency. According to Juan Kifan, decentralized coins have no guarantees, and the exchange rate of such coins is unstable. In addition, they do not contribute to improving the social welfare of the country, in contrast to the stablecoin, which will soon release the NBK.

Juan Kifan believes that international payments andsettlements between companies need to be reviewed, and blockchain technology will help improve the scope of payments. A CCIEE employee also added that the international interbank information transfer and payment system (SWIFT) and the interbank electronic clearing settlement system (CHIPS) are effective only for the United States, as they strengthen America's dominance in the financial sector.

"SWIFT is an outdated, inefficient and costly payment system that has been around for almost 46 yearsback, but there is no change in its technology.Transfers of large amounts require additional work with documentation.In addition, SWIFT charges high fees," Huang Qifan said at the summit.

Juan Kifan is sure that the digital currency,issued specifically by the state and the Central Bank, is the best way to improve monetary policy, namely, to increase the convenience and security of payments, as well as create a new standard for state cryptocurrency, which will depend on state GDP and budget.

"The People's Bank of China has been exploring the possibility of issuing its own digital currency for several years, and it will becomethe first bank to present to the world, ahead of the Libra coin," CCIEE Vice Chairman.

It is worth noting that despite all the openness toblockchain technology, China is opposed to Bitcoin and other cryptocurrencies. However, the recent speech by the head of the People's Republic of China Xi Jinping about the introduction of blockchain in the field of finance has increased the interest of the Chinese population in cryptocurrencies.