A Chinese economic think tank executive has said that China’s central bank will be the first to launch a digital currency successfully.
The vice-chairman of China Center for International Economic Exchanges (CCIEE), Huang Qifan believes that China’s central bank will win the race for the first central bank digital currency, as reported in the Chinese tech news outlet Pandadaily.
Digital Remnibi to Replace SWIFT
The think tank executive remarked at the Inaugural Bund Financial Summit of 2019 in Shanghai.
Qifan is reportedly dissatisfied with the dependence on the United States SWIFT and CHIPS payment systems, where the cross border of exchange of renminbi depends.
Qifan remarked on the comment on the basis of US sanctioning using the platform and on their technical limitations.
“SWIFT is an outdated, inefficient and costly payment system. Since the establishment of SWIFT 46 years ago, the technology has been updated slowly and the efficiency has been relatively low.”
China’s Progress With Digital Currency
On Oct 16. cryptonewspoint reported that RBC Capital Market analysts have suggested that holding back Facebook Libra, might open up possibilities for China’s central bank digital currency to dominate globally. The analysts of RBC presume that Facebook Libra stablecoin plans urged China to develop its own yuan backed digital currency.
Recently, China’s new chief of Digital Currency Research Institute and a former Deputy Director, Changchun Mu, revealed new features of the digital currency.
Mu added that China’s digital currency will be distributed through commercial banks in the same way as fiat currency. Banks are recommended to open accounts with the PBOC, purchase the currency at 100 percent value, and offer them to users through digital wallets that have been registered with financial institutions, commercial organizations or banks.
On Oct. 27. cryptonewspoint reported that the key purpose of developing the national digital currency is to “plan ahead” in order to “protect monetary sovereignty and China’s legal currency.” Once the National Currency is made digital, it could easily increase widespread use for online transactions, putting the RMB in direct competition with the US dollar.