China plans to create a single stablecoin for the Asian region

In addition to the digital yuan, which is expected to be launched soon, the People's Bank of China has been instructeddevelop and start issuing a new stablecoin.

Members of the People's Political ConsultativeCouncil of China (CPPCC) proposed creating a regional digital currency that would be backed by four Asian currencies - the Japanese yen, the Korean won, the Hong Kong dollar and the Chinese yuan. This was reported by Coindesk.

The functioning conditions of this currency are stillto be developed, but the goal that is set is to create an analogue of Special Drawing Rights (SDR). That is, the reserve unit of account of the International Monetary Fund (IMF). Thus, Beijing makes it clear that it is ready to begin to build powerful international financial institutions, which will stand in line with the IMF and the World Bank, but in which the US dollar and Washington’s influence will not play a dominant role.

The new idea also represents a certainan analogue of the Libra project, which is actively developing the social network Facebook, strengthening the staff for this with people who will help it obtain the necessary permissions for new stablecoins in Switzerland and the USA. In addition, Libra will obviously come in close cooperation with various regulators, which is what the adoption of the Singapore state investment company, Temasek, is oriented to the Libra Association.

The launch of a new regional stablecoin will allowChina, Japan, Hong Kong and South Korea should strengthen international cooperation, as well as sharply reduce the share of the US dollar in mutual trade. This step will be one of those changes that are beginning to occur in the global financial system and which put the future of the US dollar in the global economy in great doubt.

A proposal for such a stablecoin was made duringbegan a two-week party conference in Beijing, at which the country's authorities, together with business representatives, develop a strategy for developing the economy of China.

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