China will overtake Facebook and any other country on the issue of digital currency issuance. This is what the member of the important think tank of the Middle Kingdom thinks.
Huang Qifan, Vice-President of the China Center for International Economic Exchanges (CCIEE), has no doubt. The People’s Bank of China will be the first institution of its kind in the world to issue its digital currency. In his opinion, this is not a fanaticism of his country, but a necessity, because the American system makes China dangerously dependent on a competitive power.
The arms race continues….
It is possible that Qifan’s words were intended to be in line with the new strategy of China. On Friday, the president of the country said that the Middle Kingdom must bet on blockchain. Moreover, on Saturday, the local parliament passed a law on cryptocurrencies regulation, which aims to promote blockchain solutions.
Now, the Pandaily news portal has announced that the aforementioned vice-president of the China Center for International Economic Exchanges is almost certain that his homeland will be the first to issue the digital currency of the central bank. He said this during the financial summit of the Bund 2019 in Shanghai.
In his opinion, the SWIFT system, which today enables the transfer of different currencies around the world, is technologically outdated. Besides, it is an American system and can therefore be used for political purposes by the USA.
SWIFT is an outdated, inefficient and costly payment system. Since SWIFT was established 46 years ago, the technology has been updated slowly and performance has been relatively low
– he said.
This means that China is afraid of SWIFT and wants to become independent from the USA in the field of transfer of funds across borders.
China’s digital currency
The digitized juan has been talked about for a few months. The project was supposed to be a response to Libra Facebook, although it was supposed to have been worked on for several years. However, it was not until the announcement of Marek Zuckerberg’s plans that the idea came back to life.
If the reports about the e-currency of China are true, it will not be a crypto-currency, but a centralized e-currency. It is one thing that is quite obvious – it is doubtful that any state would agree to issue its own crypto-currency and hand over power to the mining community.