China’s forthcoming digital yuan may not be set to make a mark on the international monetary scene after all – and could, at least initially, be limited to domestic user-cases, experts have stated.
The stakeholders, including Michael Sung, the founder of CarbonBlue Innovations, were speaking at a session entitled “Contest of the Century? Geopolitical Impacts of China’s Digital Yuan” at the Coindesk’s Consensus digital summit today. And while Sung and others claimed that the token was likely to find uses in Hong Kong, Macao, and other territories near the Middle Kingdom, the token was not intended as a quick fix to the dollarization of China’s trade deals.
Sung, when asked if the digital yuan could be used outside China in trade settlements, noted that the “official position” of the central People’s Bank of China (PBoC) was that the token would be for “domestic” and Mainland purposes.
However, he underlined the significance of the fact that the digital yuan pilot has now been extended to the Pearl River Delta and the Guangdong-Hong Kong-Macau Greater Bay Area, which encompasses both Hong Kong and Macao. He added that “there is planning” for the “extension” of the digital CNY “across borders,” although this was “mostly” being done with a view to facilitating “Chinese tourists” in “overseas locations.”
Read more: https://cryptonews.com/news/digital-yuan-not-intended-for-the-international-stage-say-ex-10452.htm
