[ad_1]
China has begun testing its new digital currency in four major cities, including Shenzhen, Suzhou, Chengdu, and Xiong’an, and in areas that will host some of the events for the Beijing 2022 Winter Olympics.
According to the British publication guardianIn recent months, China’s central bank has stepped up its development of the e-RMB, which will become the first digital currency to be operated by a large economy.
State media China Daily He also reported that it had been formally adopted in the city’s monetary systems, with some government employees and public servants to receive their salaries in digital currency as of May.
Related Post: China Targets Centralized Digital Currency After Bitcoin Crackdown
The introduction of the digital currency is seen as a Chinese move to counter the impact of the US dollar and offer investors and companies an option, an alternative to the liquidation of the dollar.
“A sovereign digital currency offers a functional alternative to the dollar settlement system and mitigates the impact of any sanction or threat of foreclosure at both country and company level. It can also facilitate integration into globally traded currency markets with risk reduced political inspiration interruption, “a recent opinion piece from China Daily highlighted
Some reports also claim that companies like McDonald’s and Starbucks have agreed to be part of the test, however, in a statement, Starbucks told guardian He was not a participant. McDonald’s has been contacted for comment.
Digital payment platforms are already widespread in China, namely Alipay, owned by Alibaba’s Ant Financial, and WeChat Pay, owned by Tencent, but they do not replace the existing currency.
However, a decline in cash usage is expected to continue amid the growing popularity of digital payment platforms and people to avoid physical contact for fear of the new coronavirus that originated in China and killed dozens of people. before spreading to the rest of the world.
[ad_2]
