Beijing: Digital currencies the „new battlefield“ of finance

China’s central bank wants to change global finance.

People’s Bank of China has a strong focus on the geopolitical aspects of developing the country’s digital central bank currency

An article in PBoC magazine China Finance said Beijing should „accelerate the pace of CBDC development in order to be first in the global race to issue digital fiat currencies.“

The article went on to say that China should take advantage of it and become a pioneer in the field of digital currencies. This is the „new battlefield“ of international competition.

According to the article, this could lead to significant changes in the geopolitical state of international finance and it would also be an opportunity to break the hegemony of the US dollar and make the yuan international.

In addition, the experience with a digital currency issued by the PBoC would be an advantage for national monetary policy. This is all the more important now after the pandemic and in view of the economic challenges.

It also said that the research department of the PBoC had registered 130 crypto patents by the end of April 2020. These are about output, circulation and implementation

The Central Bank’s research division was set up in 2015 and the project moved forward rapidly in 2020. China’s state commercial banks are currently reviewing digital wallets for the currency.

In August, China announced that its digital Yuan in Shanghai, Beijing, Guangzhou and Hong Kong to want to test . Around 400 million people, around 29 percent of the country’s population, would be involved in this.

The PBoC also plans to use the digital yuan at the 2022 Winter Olympics . A senior official recently stated that the currency was „primarily intended as M0 “ and would therefore be subject to laws and regulations related to cash handling.

In addition to the race for a digital currency , China and the United States have also been on each other’s heels in the past few years in the area of ​​blockchain research and development. A report last week said that while the Chinese company Alibaba has filed the most patents so far this year, the United States is currently the country with the most blockchain patents .