It’s Official: China’s Digital Yuan To Target US Dollar Dominance

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American President with a face mask against CoV Corona Virus infection.

The central People’s Bank of China (PBoC) confirmed that it is ready to take center-stage on a “new battlefield” of competition between sovereign nations based on digital fiats – and claims its own new token could help break “dollar dominance.”

The PBoC has been relatively cagey about its digital yuan project, which is already in advanced testing stages, but permitted itself a rare opportunity to discuss the importance of central bank digital currencies.

Per Reuters, the PBoC stated, in an official mouthpiece publication, that the “issuance and circulation of the [digital yuan] would bring great changes to existing international finance.”

The bank added,

China has many advantages and opportunities in issuing fiat digital currencies, so it should accelerate the pace to seize the first track.

Despite recent cautionary announcements, the PBoC claimed that China needed to establish “a new payment system network to break the dollar monopoly as a key part of yuan internationalization” – with the digital yuan the cornerstone in this effort.

The bank added that “improved data feedback” from its CBDC would “help enhance monetary policy transmission,” boosting chances of a faster economic recovery from the coronavirus pandemic.

Elsewhere, Shina reported that chief architect of China Information Fintech Chen Hong Hong told attendees at the recent China Beijing International Science and Technology Industry Expo that digital currency-compatible wallet apps would play a crucial role in allowing commercial banks to speed up the implementation, promotion and adoption of the digital yuan.

As Private Software Firm says it is working on China’s CBDC project, a software developer that develops apps for commercial banks recently became the latest company to admit it was working with the PBoC on its digital currency project.

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