September 30, 2020

Central Bank of China will launch the world's first national digital currency

Central Bank of China will launch the world's first national digital currency

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News from China is getting hotter for cryptocurrency industry. Speaking at the First Financial Summit in Shanghai, which brought together world financial leaders, Huang Kifang, vice chairman of the CCIEE (China Center for International Economic Cooperation), commented in detail on the future of China's digital currency, having previously criticized Libra and SWIFT.

Libra is unpromising, and SWIFT is deprecated

The official said that he does not believe in the success of the digital currency Facebook Libra. In his view, a decentralized corporate currency that is not based on sovereign currency is doomed to failure.

He also believes that the liquidity of the RMBdepends a lot on SWIFT and CHIPS systems. The United States controls and uses both instruments to promote global hegemony and control over the global financial system.

“SWIFT is obsolete, inefficient andexpensive payment system. Since the creation of SWIFT 46 years ago, technology has been updated slowly, and efficiency has been relatively low. International bank transfer usually takes 3-5 business days. Large money transfers usually require paper documents, which creates additional difficulties for the efficient processing of large-scale transactions. ”

He also noted that SWIFT receives ambitious commissions due to its monopoly position in the market.

"People's Bank of China (PBoC) studies DCEP(electronic payments in digital currency) for five or six years, and I think the technology has taken shape. PBoC is likely to be the first central bank in the world to introduce digital currency. ”Said Juan.

Recall that on Friday, the head of China, Xi Jinping urged to intensify the implementation of the blockchain, including in the financial industry.

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