• Reportedly, the Chinese central bank digital currency (CBDC) will be launching sooner than expected, despite the COVID-19 outbreak.
  • The Chinese central bank has collaborated with many local firms like Huawei, Tencent and Alibaba to develop the currency.

The Chinese central bank digital currency (CBDC) was delayed indefinitely earlier due to the coronavirus outbreak. Now, however, as the nation is recovering slowly from the deadly virus, a Global Times report has said that the CBDC’s launch is closer than expected. 

By teaming up with several local companies like Huawei, China Merchants Bank, Tencent and Alibaba, the Chinese central bank has completed the currency development process. Between January 21st and March 17th, Alipay - the financial wing of Alibaba - has reportedly publicized five patents related to the future digital currency. This includes issuance, digital wallets, transaction recording, anonymous trading support and assistance in supervising and dealing with illegal accounts.

China’s approach to stabilizing its economy might significantly vary with the digital currency launch. Cao Yan, managing director of Digital Renaissance Foundation, believes that the People’s Bank of China should accelerate the development of the CBDC. According to him, there are two benefits to this. Firstly, it would establish China’s dominance in this new digitally-oriented world. Secondly, the currency would be more helpful during times of uncertainty.

If there is a chance China is considering lowering its interest rate into negative territory as a final option and directing such policy to commercial loans and lending, a circulated digital currency rather than M0 will be able to achieve that.


 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Only one resistance barrier ahead of Ethereum price may prevent it from surging to $1,000

Ethereum has experienced a significant rally in the past several weeks thanks to the upcoming Eth2 update. On top of that, Visa has just recently announced the support of USDC payments, which will work on the Ethereum network. 

More Ethereum News

Yearn.Finance price looks unstoppable as network continues growing and bulls target $32,000

YFI is currently trading at $29,500 and only faces one significant resistance at $29,890 before a potential massive breakout. The network's growth indicates that investors are highly interested in the digital asset which is on the verge of a breakout.

More Yearn.Finance News

Ripple Price Prediction: XRP could rise about 60% if the critical support level holds

Ripple's XRP has been losing ground since Tuesday. The third-largest coin with the current market capitalization of $28 billion hit the recent recovery tip at $0.68 and retreated to $0.62 by the time of writing. 

More Ripple News

VISA opens the Ethereum network to more than 60 million merchants as it integrates USDC

Visa looking to issue a USDC Credit Card after adding Circle Internet Financial, the developers of USDC to its Fast Track Program. Visa will not custody any USDC but will be working with Circle to enable customers to send and receive USDC payments.

More Cryptocurrencies News

BEST CRYPTO BROKERS/EXCHANGES




Gold Weekly Forecast: XAU/USD tumbles to multi-month lows on risk flows, technical selloff

Bitcoin has lived through a roller-coaster week. The pioneer digital currency hit another multi-year high of $19,500 and got really close to the all-time high on Wednesday. 

Read the weekly forecast

BTC

ETH

XRP