Former Governor of the Central Bank: Digital Yuan is not going to change the monetary system
The former head of China's central bank believes that the digital yuan will not disrupt the order of the world monetary system. According to a report by the South China Morning Post on Sunday, Zhou Xiaochuan told participants in the Shanghai Financial Forum that the China Digital Currency Electronic Payments Initiative (DCEP) should not be seen as "superpower self-aggrandizement."
According to Zhou, instead of threatening other countries' currencies, DCEP will boost foreign trade and strengthen the yuan's international standing.
Referring to the token created by Facebook, which was recently launched under the new brand name Deim, which is scheduled to be launched early next year, he said:
"We are not like Libra and we are not ambitiously looking to replace current currencies. »
DCEP is China's proposed digital centralized payment system, an official yuan token issued by the People's Bank of China (PboC). While a number of countries have begun the process of developing the central bank's digital currencies, China's efforts in this area are the most advanced efforts a large country has ever made, with the ability to be used by billions of people. .
The former governor of the People's Bank of China also said that the digital yuan could be used for trading and investment if the people so wished, but he also stressed its sensitive nature and usefulness globally.
Zhou said:
"Some countries are concerned about the internationalization of the yuan. We can not put pressure on sensitive issues and we can not impose our will. »
He continued:
"China hopes to persuade overseas customers and merchants to finally accept digital yuan payments. China has learned from the strong negative reaction of legislators and governments to Libra since it was first proposed in 2019. »
China DCEP also offers alternatives to credit cards or payment services such as Alipay and WeChat Pay. While these systems can manage foreign exchange transactions, "they are often not real-time or transparent. »
Zhou said:
"If currency exchange takes place in micro-transactions and there is oversight of that exchange ... it creates new possibilities for connection in internal relations. Or digital yuan, the problem of overseas remittances is easily solved. »
Source: CoinDesk
