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Nikkei Asia
9 hours ago
- Business
- Nikkei Asia
China's central bank moves to promote digital yuan, multipolar currency system
SHANGHAI (Reuters) -- China's central bank governor has announced plans to promote the international use of the digital yuan and called for the development of a multipolar global currency system, in which several currencies dominate the world economy. China will establish an international operation center for the e-CNY digital yuan in Shanghai, People's Bank of China Gov. Pan Gongsheng said on Wednesday at the Lujiazui Forum, a gathering of financial industry executives and regulators.
South China Morning Post
02-03-2025
- Business
- South China Morning Post
Trump's digital dollar ban leaves the field open for China
Feel strongly about these letters, or any other aspects of the news? Share your views by emailing us your Letter to the Editor at [email protected] or filling in this Google form . Submissions should not exceed 400 words, and must include your full name and address, plus a phone number for verification Advertisement Soon after taking office, US President Donald Trump issued an executive order prohibiting the establishment, issuance and use of central bank digital currencies (CBDCs) in the country. The order aims to protect Americans from CBDCs which the Trump administration sees as a threat to 'the stability of the financial system, individual privacy, and the sovereignty of the United States'. In contrast, China's pilot programme for the digital yuan launched in 2019. By early 2022, 261 million people had created an e-CNY digital wallet. This reflects a broad trend in digitalisation in China: instead of paper money, WeChat Pay and Alipay are now the default payment systems. In 2022, the e-CNY pilot programme was expanded to include Hong Kong. The Hong Kong Monetary Authority has also worked on a CBDC exchange system encompassing Thailand, the United Arab Emirates and mainland China. Some warn that the digital yuan could be part of a strategy to displace the dollar as the world's dominant reserve currency, given China's status as the top trading partner for most countries and the world's largest bilateral lender. Advertisement Others say such fears – or ambitions – are unrealistic. For one, the yuan has a lot of ground to make up: the dollar constituted 57 per cent of global cash reserves, followed by the euro at 20 per cent, while the yuan was a distant 2 per cent in the third quarter of 2024.
