According to an article published by China Finance, the People’s Bank of China (PBOC) implores its country to do its best to take the advantages of being the leading nation to establish a CBDC. China Finance’s article, notably run by PBOC, explicitly characterized this race for CBDC as a brand new battlefield for competing nations. This is because its results can shift the geopolitical status quo regarding international finance.
As per the PBOC, China can take full advantage of this as a win for them would significantly weaken USD’s position in international finance while also bolstering its native currency of yuan. Furthermore, the data return from an established digital yuan issued by the PBOC would prove highly beneficial for the national financial policy – making the post-pandemic economic climb much easier.
China’s efforts to establish the digital yuan
The pursuit of the digital yuan establishment has been going on for more than six years now. China has dedicated overwhelming resources and efforts to conduct several extensive experiments and research – and as it currently stands, it is now being tested on banks and various corporations within several varying regions. Notably, the article highlights that China has already amassed over 130 patents, including crypto issuance and circulation protocols and dedicated applications, in the efforts to turn this unprecedented project to fruition.
It has been previously reported that China aims to publicly launch the digital yuan the same date as that of the 2022 Winter Olympic Games that is set to take place in the country as well.