China is pushing forward with its experiment in creating a digital version of the Yuan. It will give foreign athletes and visitors a chance to use digital yuan at the 2022 Beijing Winter Olympics. It could be the first test for china’s digital currency with International users.
“For the upcoming 2022 Beijing winter Olympics, we were trying to make e-CNY available not only to domestic users but also to international athletes and like visitors,” Li Bo, the Chinese Central bank vice governor, said on Sunday at the Boao Forum, APAC-focused finance, and business summit.
Li Said the Chinese Central bank will include “more scenarios and more cities” to test the digital Yuan.
Li Bo, deputy governor of the People’s Bank of China (PBOC), said the aim of digital Yuan or e-CNY (electronic Chinese Yuan) does not replace US dollar dominance on the international stage.
China broadly recognises itself as one of the leaders in the development of Central bank-backed digital currency. It has been developing digital Yuan since 2014. It first major economy to trail such a project. Smaller nations, including the Bahamas, have launched digital currencies.
The CBDCs aim to reduce the payment in cash and make the payment system more reliable and ease international transactions.
“For the Internationalization of renminbi, we have said many times that it’s a natural process, and our goal is not to replace the US dollar or any other international currency,” Li said. The market would be responsible for the impact on global investment and trade.
Li also said that the Chinese Central bank collaborated with potential partners to find cross-border solutions for trading and transaction. The PBOC is also working with other banks, including Thailand, the United Arab Emirates, and Hong Kong.
“Our main focus is that we want to establish a very solid domestic e-CNY first, and build up a healthy eco-system. At the same time, working with our international partners,” Li said.