Countries across the world are moving towards digital currency and are researching and developing their own CBDC. In this regard, the People’s Bank of China, PBOC, has stated that the right to issue and control digital currency is going to be a huge competition between sovereign countries. This has been stated in an article published in China Finance magazine, which is run by PBOC.
Across all the nations around the world, China could be the first major country to issue its digital currency. This move has been taken to reduce the dependence of the country on the global dollar payment system.
PBOC States China Has Huge Opportunities in Digital Currency
According to the article published in the magazine by PBOC, both the issuance and circulation of digital currency is going to bring some great changes to the international financial system. The bank believes that China has some huge advantages and opportunities when it comes to digital currency. Due to this, there is a need to accelerate the development of CBDC across the country.
Last month, it was noted that the commercial bank of the country had started conducting the internal testing of digital wallets on a very large scale. This indicates that China’s CBDC will be launched very soon across the country.
Data Feedback From Digital Currency Will Enhance Monetary Policy Transmission
In the article, it has been mentioned that data feedback from digital currency is going to enhance monetary policy transmission. This will also work towards the economic recovery of the country post pandemic. There is also a need to establish the new payment system in order to reduce and, in the long run, remove the dominance of the US Dollar. The digital currency research unit of PBOC has filed 130 patent applications till now. This research team was established by the bank six years ago and now it is time for the success of the project.