February 22, 2024

HCM Capital: “China will launch digital currency in three months”

Jack Lee — Founder and Managing Partner of HCM Capital, a private equity firm— believes that the Central Bank of China will issue its own digital currency in three months.

Jack Lee suggested that the new currency fromThe People’s Bank of China (NBK) is already ready, and in the future the bank will use it for enhanced control of capital flows in the country. Lee explained that the NBK is already tracking cash flows using serial numbers on banknotes, and the blockchain will help to do this more efficiently. In addition, China has developed a hybrid system of electronic payments in digital currency, combining the properties of an existing payment and banking infrastructure.

“I think we will see a Chinese stablecoin very soon. It is quite possible that in two or three months,” — Jack Lee said.

However, at the end of September, the NSC announced that the dateThe launch of digital currency has not yet been assigned. At the same time, Daniela Stoffel, Swiss Secretary of State for International Financial Affairs, believes that the launch of the Chinese stablecoin will not come as a surprise to anyone. She stressed that China is setting a trend for other countries that are also starting to think about creating their own digital currencies.

“Governments of different countries began to graduallyrealize that blockchain can be used both at the state level and internationally,” — said Daniela Stoffel, adding that before implementing blockchain, problems related to money laundering need to be resolved.

In October, the People's Bank of China opened severalvacancies for technical specialists to develop and launch their own digital currency. Additionally, last month the PBOC unveiled a list of 11 types of hardware and software that local companies can use in the blockchain and fintech space.