The Digital Yuan To Be Released Ahead Of Time
The government of China decided to speed up the process of introducing state cryptocurrency. This initiative should help rebuild an economy that went down during the pandemic and trade war with the United States.
Rivalry with the USA - the main factor
One of the top blockchain industry insiders in China, Cao Yin, spoke about the main reason for the sped-up:
"Although the US hasn't put Chinese financial firms and institutions onto its Entity List, the US may still pose widespread threats to Chinese institutions and impact the yuan's standing in international settlement. In this regard, China's state-run digital currency may be rolled out sooner than expected to counter a possible US block”.
Digital Yuan vs Covid-19
Cao Yin also said that a state cryptocurrency would significantly help cope with the economic crisis that erupted as a result of the coronavirus pandemic. He said that due to digital yuan, the significant sectors of the economy that need support the most will receive funds primarily.
What is the deadline?
Although this project is a priority for the China government and they allocate huge resources for its development, officials are not in a hurry to announce specific deadlines for its launch. The head of the People’s Bank of China Yì Gāng announced that the digital yuan will be used during the Winter Olympic Games, which supposed to be held in Beijing in 2022.
Recall that the transfer of cryptocurrencies by inheritance in China will soon become a reality. Almost 53% of the bitcoin hash is controlled by only two Chinese companies. We also wrote earlier that McDonald’s and Starbucks will take over the digital Yuan.