BOAO, China – China is trying to make it possible for foreign athletes and visitors to use its digital currency during the Beijing Winter Olympics in 2022, a central bank official said on Sunday.
This could be the first test for China’s digital currency among international users.
Li Bo, Deputy Governor of the People’s Bank of China (PBOC), also said that the purpose of the digital yuan or e-CNY (electronic Chinese yuan) is not to replace the US dollar’s dominance on the international scene. .
For the upcoming Winter Olympics in Beijing, we tried to make e-CNY available not only to domestic users but also to international athletes and such visitors.
Li Bo
Deputy Governor, People’s Bank of China
The PBOC began researching the digital yuan in 2014 and recently launched a number of pilot projects in China that will allow residents of cities, including Shenzhen and Beijing, to test the currency at retailers. The e-CNY aims to replace cash and coins in circulation and promote cashless payments in China. It is not a crypto-currency and is not designed like bitcoin.
“For the upcoming Winter Olympics in Beijing, we tried to make e-CNY available not only to domestic users but also to international athletes and such visitors,” Li said during a panel hosted by CNBC at the Boao Forum for Asia is moderated on the island. of Hainan.
Li said the Chinese central bank would include “more scenarios and more cities” to test the digital yuan.
The deputy governor said there was still no timeline for a nationwide rollout of the digital yuan, but that the PBOC should increase the scope of its pilot projects and “strengthen” the technological infrastructure that supports the digital currency.
Challenge for US dollars?
Several commentators have suggested that China’s digital yuan could be a way to internationalize the renminbi and also challenge the US dollar as the world’s reserve currency. Much of the international trade takes place in US dollars.
But Li reiterated that the PBOC is focused on domestic use of the digital currency.
“For the internationalization of renminbi, we have said many times that it is a natural process and our goal is not to replace (the) US dollar or any other international currency,” Li said. “I think our goal is to make the market select and facilitate international trade and investment.”
A digital Chinese red packet is seen on a cell phone on a regular photo as Chengdu City begins distributing 200,000 E-CNY ’40 packets’ worth 40 million yuan in Yichang, Hubei Province, on February 24, 2021.
VCG | Visual China Group | Getty Images
However, the PBOC is working with other central banks – including Thailand, the United Arab Emirates and Hong Kong – to investigate the use of the digital yuan in cross-border trade.
“Our focus again is that we first want to establish a very solid domestic e-CNY and build a healthy ecosystem. At the same time, we are working with our international partners. Hopefully, in the long term, we also have a cross-border solution,” he said. Li said.