According to China Finance, an edition of People’s Bank of China, China should become the first country to launch into circulation a digital national currency. Reports by Reuters say a move of this kind will facilitate China’s efforts to expand the international status of yuan and reduce the country’s dependence on the international system of payments in dollars.In addition, the right to issue and control of digital currency will spill into a “new battlefield” of competition between sovereign states.
According to reports by the Bank of International Settlements, nearly four fifths of the central banks worldwide have been looking into the possibility of creating national digital settlements systems. The key element of such systems will be national digital currencies, also known as Central Bank Digital Currencies (CBDC). CBDC is virtual money which is controlled by the national or supranational central bank, as in the case of the European Central Bank, and which exists only in the form of information recorded on computer memory chips and is not issued in cash.
Continue read: https://moderndiplomacy.eu/2020/10/03/national-digital-currencies-may-become-another-sphere-of-competition/