China’s economy is the second-largest in the world and economists believe the country may someday bring a new global order and end the Western hemisphere’s financial rule. In 2020, various reports show that China’s central bank will soon release a cryptocurrency that represents a digital yuan. This week, regional reports show that 19 well known restaurants including Starbucks, Subway, and McDonald’s will be testing the bank’s virtual currency.
Reports this week detail that the People’s Bank of China is making headway with its digital yuan testing. Rumors of China creating a digital yuan or a central bank digital currency (CBDC) have been happening since 2013. Four days ago, the PBoC confirmed the existence of a CBDC after a number of photos went viral on social media. The PBoC made a statement about the screenshots and explained that the bank was testing. “The rumored information on the internet is part of the test in our research and development process and it does not mean the digital yuan has been launched officially,” the PBoC said.
Now regional reports indicate that 19 popular restaurants and retail establishments will be testing the digital yuan. The financial news columnist noted that Tencent and Ant Financial participated as well as JD Supermarkets, Starbucks, Subway, and McDonald’s. Various Chinese lawmakers are experimenting with the test and there is testing happening in Suzhou and the country’s Xiong’An new district. In Suzhou, it is rumored that Chinese government employees may soon be paid using the PBoC’s CBDC.
With the petro-dollar on its last leg, many economists think that China will be the world’s economic superpower with very little peers. Market strategists think Russia will be involved with China’s rise as both countries have been participating in backroom deals to trade oil for other currencies and commodities. Moreover, economists believe the digital yuan will be an integral part of China’s role in developing economic superiority. British journalist and scholar Martin Jacques believes that “China’s future economic strength will heavily alter the political and cultural landscape of the future world.” The digital yuan will be called the “DC/EP” which stands for “Digital Currency Electronic Payment.”
“Today, China is the second economy in the world and the least dependent on oil prices,” explains the columnist Sergey Baloyan “While there’s no doubt that the dollar reigns supreme today, the digital yuan is China’s best chance to compete with the dollar on the global scale in the years ahead.”
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Published at Fri, 24 Apr 2020 20:05:57 +0000