As reported by Reuters, a commentary released by China’s central banks stated that the country must be the first mover in achieving a functional and used central bank-issued digital currency (CBDC) in order to remove dependency on the US dollar and internationalise the Yuan.
According to an article in China Finance: “China has many advantages and opportunities in issuing fiat digital currencies, so it should accelerate the pace to seize the first track.”
Advancements
Multiple commercial banks have already begun testing with digital currency wallets which shows the country is truly advancing in that area. Earlier this year, the digital Yuan was rolled out in four cities for testing.
CBDCs
This race between central banks from around the world all started, or at least started picking up steam, when Facebook announced its plans to issue a digital currency via Libra. This worried nations, which almost all immediately stood against it, because Facebook has access to billions of users, more than any single country. Other countries have talked about issuing a CBDC, including the US, but few have shown as much as China has up until this point.
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