On September 9, Phoenix Chinese News sat with Jeremy Allaire, the CEO of peer-to-peer payments firm, Circle. The interview focused on one of the hottest issues in the crypto industry today, CBDC development. As per Allaire, the Chinese government exhibits to most advanced efforts and thinking about the creation of central bank digital currencies.
The PBoC’s progressive approach
The CEO of Circle noted that the People’s Bank of China appears to the only central bank in the word that has spent an incredible amount of research prior to the development. Furthermore, the efforts spring out from the perspective of a nation. Allaire even emphasized that all the other governments and central banks in the globe are not even close to what China had achieved so far.
The Phoenix Chinese News correspondent also asked Allaire’s opinion about China’s digital currency interacting with US-backed stablecoins. Allaire shared that they’ve have spent considerable years working on the US currency and know that it grows very fast. Instead of feeling threatened, the CEO voiced out his desire to witness such a day wherein the CBDC can be traded with the US dollar, among other things.
Allaire’s favorable remarks about the PBoC’s came hot on the heels of Tether’s latest offering. Notably, Tether launched
a new stablecoin, CNHT, which is pegged to the offshore Chinese yuan. The official release happened on September 9. According to previous reports, the new stablecoin is not covered by Beijing’s monetary policies.
In the interview, Allaire’s positive stance on the CBDC development of the Chinese government echoes his previous remarks about the country’s digital renminbi, which he believes can sidestep the Western banking system.
As of the latest update on the Chinese project, some unconfirmed accounts revealed that the PBoC is currently reaching out to Alibaba, Tencent, five banking institutitions and other mysterious entity in launching its first-ever central bank digital currency.
In late August, local news recounted that the PBoC is all set to release the nation’s digital currency, a development that was heavily influenced by Facebook’s upcoming Libra, as concluded by the analysts.