Rajarshi Mitra
Independent Analyst
- Reportedly, the Chinese central bank digital currency (CBDC) will be launching sooner than expected, despite the COVID-19 outbreak.
- The Chinese central bank has collaborated with many local firms like Huawei, Tencent and Alibaba to develop the currency.
The Chinese central bank digital currency (CBDC) was delayed indefinitely earlier due to the coronavirus outbreak. Now, however, as the nation is recovering slowly from the deadly virus, a Global Times report has said that the CBDC’s launch is closer than expected.
By teaming up with several local companies like Huawei, China Merchants Bank, Tencent and Alibaba, the Chinese central bank has completed the currency development process. Between January 21st and March 17th, Alipay - the financial wing of Alibaba - has reportedly publicized five patents related to the future digital currency. This includes issuance, digital wallets, transaction recording, anonymous trading support and assistance in supervising and dealing with illegal accounts.
China’s approach to stabilizing its economy might significantly vary with the digital currency launch. Cao Yan, managing director of Digital Renaissance Foundation, believes that the People’s Bank of China should accelerate the development of the CBDC. According to him, there are two benefits to this. Firstly, it would establish China’s dominance in this new digitally-oriented world. Secondly, the currency would be more helpful during times of uncertainty.
If there is a chance China is considering lowering its interest rate into negative territory as a final option and directing such policy to commercial loans and lending, a circulated digital currency rather than M0 will be able to achieve that.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
SEC Crypto Task Force plans to establish digital asset regulatory sandbox
The Securities & Exchange Commission's (SEC) Crypto Task Force met with El Salvador's National Commission on Digital Assets (CNAD) representatives to discuss cross-border regulation and a proposed cross-border sandbox project.
DeFi Dev Corp buys additional 65,305 SOL amid broader institutional interest: Solana price slides below $150
Solana (SOL) price faces growing overhead pressure and slides below $150 to trade at $148 at the time of writing on Thursday. The sudden pullback follows the crypto market's edging higher on improving investor sentiment, which saw SOL climb to $154 on Wednesday.
Uniswap Price Forecast: UNI whale moves 9 million tokens to Coinbase Prime
Uniswap (UNI) price hovers around $5.92 at the time of writing on Thursday, having rallied 12.8% so far this week. According to Wu Blockchain, data shows that the address potentially related to the Uniswap team, investor, or advisor transferred 9 million UNI to the Coinbase Prime Deposit on Thursday.
Tron DAO announces $70B USDT supply: Here's how TRX price could react
TRON’s USDT circulation just surpassed $70 billion, signaling rising network utility as TRX price approaches a technically significant breakout. On Wednesday, TRON DAO confirmed that the circulating supply of Tether (USDT) on its blockchain has surpassed $70 billion.
Bitcoin Weekly Forecast: BTC holds steady, Fed warns of tariffs’ impact, as Gold hits new highs
Bitcoin price consolidates above $84,000 on Friday, a short-term support that has gained significance this week. The world's largest cryptocurrency by market capitalization continued to weather storms caused by US President Donald Trump's incessant trade war with China after pausing reciprocal tariffs for 90 days on April 9 for other countries.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.