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While central banks in the world are reducing interest rates to zero and taking drastic action to combat the economic downturn caused by coronavirus, the Chinese central bank is speeding up the plan to issue money. Central bank digital currency (CBDC).

According to the Global Times reporting On March 24, China was one step closer to the release of CBDC. The Bank of China has completed the development of the basic functions of the digital currency and is currently drafting laws to help implement it.

The Global Times also mentioned a number of private companies based in Shenzhen including Alibaba, Tencent, Huawei and China Merchants Bank that have been involved in the development of this digital currency.

Cao Yan – CEO of Digital Renaissance Foundation, told the Global Times that these private companies have been selected based on their rich experience in blockchain payments and third parties.

China has taken advantage of advanced mobile payment companies

Alibaba's Alipay and Tencent's WeChat Pay have more than 1.7 billion active accounts across China – that's 300 million more than the country's total population of billions. They have chosen a mix of social media, e-commerce and payment companies to create an advanced online commerce infrastructure.

Alipay has published 5 patents related to China's official digital currency between January 21 and March 17.

Patents cover several areas of digital money, such as issuing, recording transactions, digital wallets, and supporting anonymous transactions in monitoring and handling illegal accounts. France.

China's long-term goal is to be ahead of the international economic development

Cao Yan believes that accelerating the CBDC plan can help turn the crisis into an opportunity, as cryptocurrencies are considered the most convenient tool to shift the central bank's negative and zero interest rate policy to commercial banks. trade. He adds:

“If there is an opportunity for China to consider lowering interest rates into negative regions as a last resort and directing that policy to commercial loans and loans, then a digital currency circulating instead of M0 will can get there. ”

As Toiyeubitcoin previously reported, China has implemented digital currency plans among nations regarding the Belt and Road initiative. China considers CBDC to be an important strategy to help the yuan prevail in international economic development.

READ  CBDC, although preferred, may not do much in terms of anti-censorship

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According to CoinTelegraph
Translated by ToiYeuBitcoin

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