Chinese central bank is all keen on internationalizing the use of the national currency Renminbi (RMB) in the international market, and its central bank digital currency is a key step in this direction. The PBoC is confident that promoting the use of e-CNY will make RMB the world’s third-largest currency in terms of trade, settlements, and international reserves.
As per the RMB tracker of the Society for Worldwide Interbank Financial Telecommunication (SWIFT), RMB has a share of 2.46% in global payments and retains its position as the fifth-most active currency. The “RMB payments value in June surged 65.51 percent over the level in May,” reports state media China.org.
Tapping Into the Cross-Border E-commerce Market
China’s central bank digital currency Digital Renminbi (e-CNY) is currently undergoing multiple tests. Tu Yonghong, deputy director of the International Monetary Institute (IMI) believes that cross-border e-commerce could be game-changing for the use of e-CNY. This is because it is “natural and particularly easy to accept,” he added.
Other experts believe that the use of e-CNY will also help reform the international monetary system while simultaneously internationalizing the use of the Renminbi. The first such wide-scale practical use of e-CNY could be during the 2022 Winter Olympics in Beijing.
The Chinese central bank is working on this idea for a long. However, three U.S. senators have recently raised an objection to such a move saying that it can jeopardize the privacy and security of its athletes. It is clear that the international use of e-CNY will require consensus from the global community. Thus, the PBoC is actively engaging in communication.
The PBoC has also confirmed that it will actively explore cross-border pilot payment programs using e-CNY. Thus, it will work with other central banks and monetary authorities to set up exchange arrangements and regulatory cooperation.
China’s goal is clear as it looks to reduce the dependency on U.S. Dollar. Furthermore, it aims to take a lead when it comes to the use of digital money in global markets.
- Do Kwon Says Terra Collecting Snapshot Data For LUNA Airdrop
- Top ETH Whales Add These DeFi Tokens Amid Crypto Volatility
- Here’s Why Bitcoin (BTC) Could Be In for Another 50% Correction Under $15,000
- Another Top Exchange To Delist Terra UST Over Collapse
- Just-In: Vitalik Buterin No Longer A Billionaire As Ethereum Crashes
- Bitcoin Price: Key Metrics Show Surprising Insights
- After Terra Crash, Galaxy Digital CEO Warns Against Bottom Buying
- Shiba Inu (SHIB) Prices May Jump Next Week; Here’s Why
- Is Andre Cronje Back On Fantom? FTM Jumps 13%
- PlanB Says Bear Market Almost Over, Bitcoin (BTC) In Buying Range
- FTM Price Analysis: Buyers Tease Breakout From Long-Coming Trendline
- GALA Price Analysis: High Momentum Fallout Warns $0.075 Fallout
- Apecoin Price Prediction 2022 : The future of Web3 and NFTs ?
- Ethereum Classic Price Prediction 2022 : Here’s What to Expect from ETC Price ?
- SAND Price Analysis: SAND Buyers Await Trendline Breakout To Go Long
- Avalanche Price Analysis: AVAX Sellers Tease $30 Fallout; Sell or Hold?
- Bitcoin Price Analysis: BTC Price Strikes $30000; Breakout Or Fakeout?
- TRX Price Analysis – Another Bullish Attempt For $0.075 Breakout
- KuCoin Price Analysis: Low Volume Rally Hints Pullback Opportunity in KCS
- Polkadot Price Analysis: Bull Trap May Drag DOT Price To $7.3 Mark