Tuesday 9 August 2022
Home / crypto news / china is a step closer to cbdc
China CryptoCurrency

china is a step closer to cbdc

While central banks around the world cut interest rates to zero due to the coronavirus epidemic and take serious measures against the recession, the China central bank is accelerating the national digital currency supply process.

According to CoinTelegraph, China is one step closer to issuing a National Digital Currency (CBDC). The country’s central bank has completed the core function of the official digital currency operation and is now developing laws that will help implement it.

Shenzhen-based private companies, including Alibaba, Tencent, Merchants Bank of China and Huawei, have contributed to the development of the digital currency.

Cao Yan, director of the Digital Renaissance Foundation, said in an interview that these private companies were selected because of their valuable experience in the Chinese blockchain and third-party payments.

Payments made by Alibaba’s Alipay and WeChat Pay platforms to Tencent have more than 1.7 billion active accounts across China, while China’s population of 1.4 billion. The two companies have created social and business networks and electronic payments to create advanced online business infrastructure.

Alibaba has reportedly only filed 5 patents related to China’s national Cryptocurrency between January 21 and March 17.

According to media reports active in the digital currency field, these inventions include a variety of transactions including issuance and recording of transactions, digital wallets, anonymous trading support and assistance in monitoring and dealing with illegal accounts.

Cao believes that accelerating China’s national Cryptocurrency program could turn the crisis into an opportunity. Because digital currencies are considered one of the most appropriate tools for applying zero or negative interest rate policies to commercial banks. He added:

If China seeks an opportunity to cut bank interest rates to zero or even negative as a final solution, and wants to apply this policy to commercial lending, a circulating digital currency better than M0 will help achieve that.

The term “M0” or so-called “coinage” refers to coins or banknotes in circulation and other money equivalents that can be easily converted into cash.

China intends to implement digital yuan in countries including the Belt and Road Initiative. China views its national digital currency as an important strategy to enable the renminbi (China’s national Cryptocurrency) to take the lead in international economic development.

ExPay 24 provides safe and secure services in the shortest time possible. Our services include exchanging cryptocurrencies such as Ethereum, Ripple, Tron, Bitcoin, Tether, Monero and Litecoin to Matercard, Google Play, Webmoney, iTunes and also other various services. Your orders will be placed 100% automatically. Contacts us for more information.

About Sean Patterson

Check Also

KBW 2022: Digital property rights key to thriving Web3 economy — Animoca’s Yat Siu

Yat Siu, co-founder of Hong Kong-based venture firm Animoca Brands has argued that on-chain digital property rights are the main aspects of blockchain technology that will drive a more decentralized society. Speaking at Korean Blockchain Week 2022 (KBW), the Hong Kong entrepreneur noted that we’re all “digital dependents” and “data is the resource of metrics” that bring value to platforms like Apple, Google, and Facebook, Sui said: “The most powerful companies in the world today are not energy companies or resource companies, they’re tech companies and they're not powerful because they make software. They're powerful because they control our data.”But unlike the Web2 platforms that we’ve become accustomed to, blockchain-based applications allow us to control that data and not be subject to “digital colonization”, said Sui, adding: “The powerful [thing about] Web3 is the fact that we can take ownership and we can make a big change with this because we have distributed and dec..

Leave a Reply

Your email address will not be published. Required fields are marked *