China’s Central Bank To Launch Its Own Digital Currency – Global Tech Giants Are Involved
China has been bashed a lot by the US President Donald Trump following the spread of the Covid-19 and more voices have already said that after all this is over, China will have to pay.
Meanwhile, China is working with private industry in order to accelerate the roll-out of the central bank-backed digital currency.
People’s Bank of China will issue an official digital yuan
The Daily Hodl reported that, according to a report released by the Global Times, a few Chinese tech giants which include Alibaba, Tencent, and Huawei, as well as China Merchants Bank, have been working with the People’s Bank of China (PBoC) to issue an official digital yuan.
More industry insiders told the Global Times that Alipay, which is the financial arm of the Chinese e-commerce and cloud computing giant Alibaba filed five patents linked to the development of China’s digital yuan.
The online publication cites an insider who said the following: “Judging from the patents, the first step of technological development has been basically completed.”
Cao Yan, managing director of Digital Renaissance Foundation, said the following:
“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 [cash] will be able to achieve that.”
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Crypto market in 2020
The crypto market has been really affected by the whole coronavirus pandemic.
But this did not stop all kinds of optimistic predictions about the price of Bitcoin from popping up.
Some analysts said that during these tough times, the crypto and blockchain technology would have a chance to show their true benefits for the world.
Bitcoin is expected to see a massive surge in price after the halving event, which is scheduled for May.
Andreas Townsend Author
I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.