China plans to create an international clearing and settlement network for mobile payments using the digital yuan. CoinDesk reports, citing Renmin Ribao.
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According to the publication, the network will be a “breakthrough point” in cross-border use of DCEP.
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“The internationalization of the yuan is a necessity for China’s economic development and seems inevitable, given its progress,” Sun Ke, deputy director of the Institute of International Monetary Studies at Renmin University of China, said in an interview.
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DCEP will allow authorities to improve monitoring of cross-border capital flows.
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Journalists noted that in the new five-year plan, the internationalization of the yuan is listed as one of the goals, although officials formally prefer not to foreground it.
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Earlier, former head of the People’s Bank of China said that the DCEP does not threaten global currencies.
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Earlier, Matthew Graham, head of the blockchain startup Sino Global Capital, said that the digital yuan would undermine the dollar’s global hegemony.
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In February, the People’s Bank of China and the UAE joined the project to create a “bridge” for the digital versions of Hong Kong’s and Thailand’s currencies.
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In December 2020, the Hong Kong Monetary Authority discussed with the People’s Bank of China the possibility of testing CBDC in cross-border payments.
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Earlier, US lawmakers expressed concerns about falling behind China in developing a digital currency.
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