China Relies on CBDC to Get Out of the Corona Virus Crisis

The People's Bank of China emphasizes that there is an urgent need for CBDC in a pandemic

Bank Chief Scientist Guo Weimin said the 2019-2020 turmoil had a negative impact on the financial sector. Therefore, in the current environment, Chinese companies must urgently switch to CBDC.

Digital currencies have many benefits during pandemics. They solve problems, promote economic development, and help comply with financial rules.

CBDC makes it easier for the authorities to control cash flows and ensure the stability of financial systems. After all, cryptocurrencies are easy to regulate and track.

The People's Bank is confident that after the widespread introduction of the national cryptocurrency, new options for its use will appear. Therefore, CBDC will bring even more benefits to businesses and government services than is currently predicted.

Recall that the project to launch a national cryptocurrency in China is in full swing. The country is conducting pilot tests in several regions, including in Shenzhen. With an application downloaded to the smartphone, it was possible to access the digital yuan.

The test ended on January 17th. During the testing period, 140,000 transactions were made. No particular problems were found. The use of CBDC for in-store payments has been found to be convenient and quite successful.