The economic growth of China in the past decade has made the potential push of the digital yuan into the global scene more of a necessity.
The Chinese government, through the People’s Bank of China (PBoC) is working on plans to build a global clearing network for mobile payments that will be settled in its Central Bank Digital Currency (CBDC), the Digital Yuan. As reported by Coindesk, citing an Op-Ed by the People’s Daily, the network will be a “breakthrough point” in the cross-border use of the digital currency.
China’s ambitions with the Digital Renminbi are high, and this is adequately backed by the PBoC championing efforts to push the new form of money into the national and international limelight. According to the referenced People’s Daily article, the Asian giant also wants to use the digital yuan to improve the monitoring and early warning capabilities regarding cross-border flows of the yuan.
The economic growth of China in the past decade has made the potential push of the digital yuan into the global scene more of a necessity. According to Song Ke, deputy director of the Institute of International Monetary Studies at the Renmin University of China, the internationalization of the digital yuan is also essential for the country’s continuous economic growth.
While the country’s officials in charge of the digital Renminbi project have been avoiding giving details about the internationalization efforts being pursued, China’s state planning documents like the Five Year Plan reveal that the global push of the national currency is one of the government’s goals.