2019 has certainly been a good year for crypto taking its place on the world stage. First, it recovered from the month-long bear run and was finally able to break a long-running dry spell. Then, that was the announcement on Facebook’s Libra token which has been a catalyst for a great discussion about cryptocurrency on the world stage as well as regulators finally paying attention to the idea of cryptocurrency and what it means for the global financial system. In what some believe is their response to Libra, it was announced that China is developing its own national digital token for which not many details are known.
Apparently, the upcoming token will enable retail payments as well as international payments and this information comes courtesy of a former People’s Bank of China executive.
New Details Emerge
This new information was courtesy of Zhou Xiaochuan, the president of the Chinese Finance Association and former governor of the People’s Bank of China who spoke on November 26, 2019, at the 2019 Caixin Hengqin Forum, In which he highlighted some possible applications of central bank-issued cryptocurrency.
The first application, he says, is a payment system for retail transactions within the country and the second is an international settlement system for cross-border payments. It should be noted that blockchain technology has been regularly used for the settlement of cross-border transactions as it is considered a cheaper and easier alternative to some traditional systems.
Zhou was the long-running president of the Peoples Bank of China and is considered one of the most influential financial experts within the country. He stated that fiat currency is still a national symbol of sovereignty and that there are some risks associated with a Central Bank digital currency and that any central bank that is considering one must pick their options wisely to avoid a credit crisis. It has been reported that China has completed the central bank digital token but no official release date has been given as it is believed that more testing and research needs to take place before an official launch can happen. Needless to say, it seems China’s digital token future is taking shape.