Digital currency (4) : Internationally?

I am closely following the gradual introduction of the Chinese digital currency. Moreover, my curiosity is sharpened by the country’s authorities’ very great discretion around this project. The Trigger Trend site even talks about secrecy. In China, silence and the unspoken have significant meanings; certainly, major projects are at work.
What’s new, according to the Tiger research bureau?

First outing from China

He reports that the new Xiongan area south of Beijing is preparing to encourage cross-border e-commerce while exploring its possibility. Is this the first series of tests ?

Internet giants are being brought in to help.

Ali Baba and Tencent have already worked on this currency with the central bank, Bilibili, Meituan, and Didi. All these companies have remained rather discreet about this cooperation.

An undeniable potential

Individual investors are very attentive to companies that could be part of the movement. HyUnion Holding 海联金汇, a company in Fintech and artificial intelligence, had to deny its participation in the project.
If 82.39% of adults practice payment on the Internet, only 4% use Fintech to manage their asset. The potential is undeniable. When asked about the money held in these digital wallets, the government does not answer.

Control

The Central Bank does not want to let go of Fintech’s domain and leave the management to private companies. Even if it is claimed that the flows are anonymous, it is elementary for the Central Bank to have all the information on the issuers and recipients of a money transfer.
According to the Singaporean Bank DBS chief economist, Neilin Zhou, the central bank, will effectively fight a debt crisis. For example, to stop the worsening of the construction of these ghost towns 鬼城, the Ministry of Finance will interrupt investors’ money transfers very quickly.

The application for digital money :

Internationalization of the yuan

Is the purpose of this currency to challenge the United States? Initially, it was intended mainly for the local market. Still, the turn of Sino-American relations in recent years has prompted the authorities to take a more global and international view. The digital currency could help the yuan’s internationalization, which is increasingly in demand in the financial spheres. We have moved from the position summarized by the Standard Chartered Bank strategist as follows: “The internationalization of the renminbi, originally a good have; now it is slowly becoming a “must-have” 人民币国际化,原来是一个good to have 的东西,现在可能慢慢的变成一个must have. »

To be continued

Source :
中国数字货币大动作频频,但距离挑战美元霸权还是一个遥远的梦

To learn a little more about the subject, other articles here :

China’s digital currency

Digital currency in China (2)

Digital currency (3) and the Ming dynasty

8 September 2020

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