- China to prioritize digital currency amid Coronavirus
- “One is to strengthen the top-level design, unswervingly advance the research and development of legal digital currency”
According to the People’s Bank of China, the People’s Bank of China is prioritizing the development of a national digital currency, also known as the digital yuan. This came as the government outlined their plans on how they will provide monetary relief to the economy as COVID-19 wrecks havoc worldwide.
China’s digital currency has been in development since 2014, over 6 years ago. However, development has accelerated over the last few years. And as COVID-19 rages, the People’s Bank of China has prioritized the project.
One is to strengthen the top-level design, unswervingly advance the research and development of legal digital currency, systematically promote the reform of cash issuance and return systems, and accelerate the promotion of banknote processing business, issuance of bank guards and issuance funds.PBOC Statement (translated)
Amid the Coronavirus, the government has prioritized the development of the currency. Although the development of the digital Yuan isn’t new news, the recent affirmation of development furthers the digital Yuan amid COVID-19.
How Can a Digital Currency Help During COVID-19?
As China decides to prioritize digital currency amid the Coronavirus, many countries are working on a digital currency. The coronavirus acts as a catalyst for these projects by providing a real-world use case.
With the global economy suffering significant losses over the last few months, many countries have prepared stimulus bills to cushion the economy, including China’s 3.6T stimulus bill.
The world learned several lessons from the 2008 crisis. Like the current situation, many governments had passed stimulus bills that pumped trillions of dollars into the global economy. However, disbursing the stimulus money was chaotic and slow.
…systematically promote the reform of cash issuance and return systems…PBOC Statement (translated)
However, a digital currency may help solve those problems.
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