China’s Former Central Bank Chief Calls for CBDC Leadership
The former Governor of China’s central bank, Dai Xianglong, believes that China should take the lead in adopting central bank digital currencies (CBDCs) to turn the yuan into the most stable currency and promote a stronger central banking system. He emphasized that being at the forefront of digital currency technology would help China globalize the yuan and de-dollarize its trade sector. Russia and Argentina are already using the yuan for their imports from China, and Chinese financial leaders aim to strengthen yuan globalization through the use of the digital yuan (e-CNY). They plan to explore digital yuan-powered trade in ASEAN nations and integrate it with the Belt-and-Road Initiative.
Digital Yuan Adoption Efforts in China
Chinese cities and provinces are actively working towards boosting digital yuan adoption. They have set up digital yuan “experience zones” where citizens can try out opening CBDC wallets, making transactions, and more. The Zhongshan Branch of the People’s Bank of China has collaborated with the Zhongshan Financial Affairs Bureau and the Guzhen People’s Government to establish an e-CNY cabin in downtown Guzhen. Visitors can use their digital yuan wallets to purchase items such as mineral water and coffee at discounted prices. These initiatives aim to familiarize people with using the digital yuan and encourage its widespread adoption.
Hot Take: China Takes a Strong Stance on CBDC Adoption
China’s former central bank chief, Dai Xianglong, believes that China should lead the world in adopting CBDCs, particularly with its digital yuan pilot program. By being at the forefront of digital currency technology, China aims to globalize the yuan and reduce its dependence on the US dollar in international trade. The country is already making progress with countries like Russia and Argentina using the yuan for their imports. Additionally, China is actively exploring opportunities to integrate the digital yuan with initiatives such as the Belt-and-Road Initiative. These efforts demonstrate China’s determination to establish itself as a leader in CBDC adoption and strengthen the position of its national currency.
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