Lihui Li: “the spread of coronavirus is pushing the NSC to issue a national cryptocurrency”

As the former president of the People's Bank of China (PBOC) said, the fight against coronavirus may push the Central Bankcountries to faster release of national digital currency.

In an interview with China Daily, Lihui LiLi) said that digital currency provides a more efficient and convenient way of payment, especially since physical contact with paper is not required. Such properties of cryptocurrencies can be very useful during an epidemic.

Recently, the Chinese authorities decided to destroy the oldpaper notes and distribute new ones in order to help combat the spread of coronavirus. In total, more than 600 billion yuan ($ 85.9 billion) were withdrawn from circulation. Basically, the procedure for replacing money took place in Hubei province, where the outbreak occurred.

At the same time, Li noted that the adoption of the state cryptocurrency largely depends on the Chinese retail market. Now in this industry payment systems WeChat Pay and Alipay dominate.

"Electronic payment platforms in China quicklyare developing and have already reached a certain level, and WeChat Pay and Alipay systems occupy the first and second places in the world rating of online payment platforms, ”he said.

A colleague was supported by Professor Dong Yang from China People's University. He said alternative and fully digital currencies could gain popularity during an epidemic.

Recently, eToro platform analyst Nemo Qin stated that in the long term, the spread of the Chinese state-owned digital currency will not affect the cryptocurrency market.

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