• 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

BTC/USD is on the verge of a massive rally, on-chain data implies

Bitcoin's address activity has reached 1.07 million, which is the highest level since January 2018, according to the cryptocurrency data provider Santimnet.

More Bitcoin News

EOS /USD enters bullish phase, gains 2% in a matter of minutes

EOS/USD catapulted to $2.44 having gained over 2% of its value in a matter of minutes. By the time of writing, the coin retreated to $2.40; however, it is still nearly 2% since the start of the day and 1.45% higher on a day-to-day basis.

More EOS News

XRP/USD attempts a recovery, still within the range

Ripple (XRP) has been trading in a tight range since the end of June. At the time of writing, the coin is changing hands at $0.1770, having gained over 1% since the beginning of the day. 

More Ripple News

ADA/USD drops down following a heavily bullish Wednesday

ADA/USD bears dropped the price down from $0.0976 to $0.0945 this Thursday. This followed a heavily bullish Wednesday, wherein the price flew up from $0.0833, climbing above the 20D Bollinger Band.

More Cardano News


Bitcoin Weekly Forecast: BTC volatility drops to a year low, get ready for a spiral drive

The week was tough for the cryptocurrency markets confined to tight ranges. Bitcoin has lost 1% of its value during the recent seven days with the trading range limited by $9,298 on the upside and $8,933 on the downside.

Read the weekly forecast