China wants to remain number 1 by building its own digital currency


The Chinese ambitions to dominate the world can probably be matched only by Mark Zuckerberg. What do the two parties have in common besides the drive to take over the world?
Cryptocurrencies, of course, which are now seen as a means to an end and not as a way to liberate the individuals from state-controlled banking institutions.
However, if we had to place our bets, we may be sure of a win if we choose the Chinese side where the national Central Bank of the country is looking to issue a state-owned ‘cryptocurrency’ that should offer China a leading position in the crypto market and the blockchain realm.
Perhaps forgetting a little too fast the less successful experience of Venezuela’s Petro, the Chinese officials such as Huang Qifan – Vice-president of China Center for International Economic Exchanges – explains that: “The People’s Bank of China (PBoC) will probably be the first central bank in the world to issue a sovereign digital currency.”
The CCIEE economic think-tank is closely examining the progress of the Chinese central bank’s cryptocurrency project, calling it the Digital Currency Electronic Payment, or DCEP. The DCEP would be best placed in the race to become the central bank digital currency (CBDC) according to the head of the Chinese think-tank.
In his speech, Huang Qifan also denounced the current dependence on the SWIFT system of international payments – subject to the goodwill of the United States – as well as the fact that this system is increasingly outdated.
Since the creation of SWIFT 46 years ago, the technology remained behind with a relatively low level of efficiency. As previously explained, China’s digital currency will be based on a two-tier system: the first will link China’s central bank (the only issuer) to all commercial banks, and the second tier will link commercial banks to professionals and individuals.
A revelation of importance to be noted in the Chinese officials’ communication indicates that the new digital currency would ultimately replace (and not just coexist with) the current money supply in China.

Leave a Reply

Your email address will not be published.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