According to the head of the central bank, the Chinese central bank wants to enable foreign athletes and visitors to the country to use the country’s digital currency during the 2022 Beijing Olympic Games.
Li Bo, vice president of the People’s Bank of China, said the upcoming Winter Olympics could be the first test of the Chinese central bank’s digital currency, or CBDC, by foreign users.
“For the upcoming Winter Olympics in Beijing, we have tried to make e-CNY available not only for domestic users but also for international athletes and other visitors,” Lee said Sunday at CNBC at the Boao Forum for Asia. The bank earlier announced plans to test the digital yuan at an event in August 2020.
The official said NBK does not intend to replace the dominant position of the US dollar as the global reserve currency. Li said the central bank is focusing on the internal use of the digital yuan.
Regarding the internationalization of the yuan, we have said many times that this is a natural process and that our aim is not to replace the US dollar or other international currencies. I believe our goal is to allow the market to choose and facilitate international trade and investment. , He said.
While the People’s Bank of China focuses on the domestic digital renminbi, the Chinese central bank continues to investigate the cross-border use of central bank currencies. Meanwhile, we cooperate with our international partners. “Hopefully, in the long term, we have a cross-border solution,” Lee said. At the forum, Li also said that the Chinese central bank is now considering the large cryptocurrency Bitcoin (BTC) as an “investment alternative”.
After launching the first domestic digital tests for the yuan in 2020, China launched cross-border pilot projects for the Convention on Biological Diversity in partnership with the central banks of Hong Kong, Thailand and the United Arab Emirates in February 2021. On April 1, Director of the PBoC Research Office Wang Xin announced that the Chinese central bank had completed The first digital trial of a cross-border digital yuan with the Hong Kong Monetary Authority.
Chinese authorities have repeatedly stressed that the government is not seeking to replace existing fiat currencies, including the US dollar, with digital yuan. “We are not like a scale and we have no ambition to replace the existing currencies,” said Zhou Xiaochuan, president of the China Finance Association and former governor of the National Bank of Kuwait, at the end of 2020.
As Cointelegraph previously reported, the United States has approached the Commercial Central Bank with caution given the US dollar’s status as the world’s reserve currency and other privacy concerns surrounding the central bank’s currency. The European Central Bank is also still deciding whether Europe needs the digital euro, and ECB President Christine Lagarde expects the digital currency to be introduced no later than four years from now.