Former Chinese Central Bank Governor Zhou Xiaochuan assured that the country’s central bank digital currency (CBDC) is for retail transactions. According to him, this asset class was created for financial transactions between buyers and sellers. E-CNY is not a replacement for the SWIFT payment system and was not launched in order to become a weapon or tool for fraudsters.
The expert announced this during the Tsinghua PBCSF 2022 Global Financial Forum in Beijing. The specialist noted that at the moment the digital yuan may not be able to cope with the task of playing the role of a means for cross-border payments.
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According to Zhou Xiaochuan, China’s CBDC could be adapted for this purpose in the future. However, the expert stressed that the cryptocurrency will continue to be focused on retail sales within the state. The financier expressed the opinion that the world should beware of a return to the strained relations that dominated the trading industry during the Cold War era, as this would harm all countries.
Zhou Xiaochuan noted that the digital yuan (e-CNY) implementation program has been successfully rolled out in 23 cities in China. According to data for 2021, transactions worth $11.24 billion were recorded.
Later, in February this year, the Central Bank of China announced the expansion of a pilot cryptocurrency program for retail transfers in Hong Kong. The digital yuan is also participating in the mBridge project to facilitate cross-border payments between China, Thailand and the United Arab Emirates.
Earlier, the editors reported : Cardano founder Charles Hoskinson assured the public that launching a CBDC is a bad idea. According to the expert, this will lead to a global financial crisis. He expressed confidence that the G7 countries decided to create a CBDC in order to continue to control the flow of funds.