China’s President Urges G20 Nations to Be Open to CBDCs

Chinese central bank, the People’s Bank of China (PBOC) has gone really far in the development of its central bank digital currency (CBDC) called Digital Yuan and is on the verge to launch it. The bank is currently conducting pilot trials of Digital Yuan all across the whole country. Meanwhile, the president of China Xi Jinping is asking the countries of the international forum G20 to show support to Central Bank Digital Currencies (CBDCs).

Xi Jinping has uttered these remarks regarding CBDCs during a meeting of G20 on November 21. While discussing Central Bank Digital Currencies at the G20 meeting, the Chinese President said that they need to collaborate with each other on forming the digital economy by promoting an environment that should be “open, fair, just and non-discriminatory”. Also, he said, they need to show support to the leadership role of the United Nation “in this field”.

Moving on ahead, he stated that it is also crucial for the countries of G20 to show an “open and accommodating” attitude toward centralized digital currencies. And they can do that by creating key “standards and principles” for the fiat-backed digital currencies. As XI said:

“The G20 also needs to discuss developing the standards and principles for central bank digital currencies with an open and accommodating attitude, and properly handle all types of risks and challenges while pushing collectively for the development of the international monetary system.”

Not only the President of China urged the nations of G20 to adopt an open attitude on CBDCs but also he encouraged them for developing strategies for tackling global challenges they are facing such as the Coronavirus pandemic. He said that they need to adopt key measures that may help in overcoming the problems that the global pandemic has caused to developing countries.

China has progressed well so far with its central bank digital currency project. With the testing phase of Digital Yuan being conducted successfully across the country, China is in the final stages of the project. So far now, around 4 million transactions involving Yuan have been conducted in which $299 million worth of yuan (2 billion) has been processed.

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