People's Bank of China (PBOC) Governor Yi Gang reported that there is no specific plan for launching digitalRMB. With the introduction of US sanctions, launch can be accelerated.
In an interview at the Chinese People's conferencePolitical Consultative Conference Yi Gang reported that in April the PBOC began testing the national digital currency payment system interface in four Chinese cities: Shenzhen, Xiongang, Suzhou and Chengdu. Testing is carried out for research purposes only. Its success does not mean that the digital yuan will be officially launched, as the developers do not have a specific plan or date for the launch of the state-owned cryptocurrency.
At the same time, Gan said that digital currency anda payment system can already be submitted to the Olympic Winter Games in Beijing in 2022 in order to check the stable and smooth operation of the system. The manager of the NBK emphasized that the capabilities of such a payment system began to be studied back in 2014, and to date, developers have managed to create a high-level design and basic functions of the system, as well as conduct joint tests for defects.
The main goal of creating a cryptocurrency of the Central Bank is toso that it can become an analogue of the traditional monetary system with the ability to control anonymity. Gang added that the digital yuan will create favorable conditions for the development of the Chinese digital economy, as it will become a legal cryptocurrency. The NBK stablecoin will increase the convenience and security of retail payments, therefore it will be in demand among the population.
There is speculation that the launch of Chinese digitalcurrencies can be accelerated if the United States imposes economic sanctions on financial institutions in China. The US has not yet added them to its “black list”, but if this happens, the renminbi’s position in the global financial arena will be greatly weakened. Therefore, the Chinese government can launch its own stablecoin much earlier in order to counter actions by the US authorities.
In addition, former PBOC President Lihui Li believes that the fight against coronavirus can push the country to issue a national digital currency.
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