China’s central bank Pan Gongsheng has pledged to expand the trace of digital yuan, re -proved the country’s vision for the central bank digital currency (CBDC).
According to In a Reuters report, China creates an international operation center in Shanghai for Digital Yuan, also known as E-CNY. Pan made comments at the Lujiazui Forum, a professional forum for high-profile local and international regulators and executives.
China thinks of a “multipolar” currency system where many currencies support the global economy, Pan said. This vision is in contrast to the current system, where some currencies, such as the US dollar and the Euro, play large roles in the global financial system.
The US dollar, in particular, may be less attractive to 2025 investors, which is partly due to the unlucky control of US president’s tariffs Donald Trump in recent months.
Pan also weighs digital technologies, claiming that traditional cross-border payment systems are vulnerable to geopolitical risk.
“Traditional cross-border payment infrastructure can be easily politicized and weapon, and used as a tool for unilateral penalties, damaging global economic and financial order,” he said.
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The battle between Stablecoins and CBDCs
Stablecoins, which are often peged into the US dollar, are well-known for their ability to facilitate cross-border transactions. These digital assets are considered one of the first breakthroughs of the basic use of crypto and show a contrast to CBDCs, controlled by a centralized creature, such as the central banks.
Despite the rising adoption of Stablecoins, many countries continue to pursue CBDCs. Hong Kong, a special region of China administrative, The progress of the stablecoin pilot program. In Europe, lawmakers throughout the member state Continue to push for a digital euroWhile the United Arab Emirates Looking forward to roll out the digital dirham By the end of 2025. Israel also has Released an initial design for a digital cycle.
According to a February 11 report from the official Monetary and Financial Institutions Forum (OMFIF), CBDC’s interest is cooling to central bankswith 31% delay in implementation plans. Among the central banks, common concerns include regulation and economic conditions.
China started Exploration Creating a CBDC in 2014 and has plans to expand Digital Yuan as a payment tool both worldwide and indoors. The country expects to fight the role of the US dollar as a reserve of money in the world. The two countries have been in a trade war since Trump released the tariffs.
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