Chinese officials are reportedly planning to create an East Asian digital currency Reaffirm more independence from the US dollar and promote trade relations within the region.
According to a recent Nikkei Asia report Ten members of the Chinese People’s Political Consultative Conference, the country’s main political advisory body, proposed to create a digital currency supported by a basket of currencies containing the Chinese yuan, Japanese yen, South Korean won, and Hong Kong dollar. The article doesn’t state which blockchain the cryptocurrency would be based on.
According to reports The proposal was made by Neil Shen, co-founder of Chinese travel services giant Ctrip and the country’s leading venture capital investor, and Henry Tang. Hong Kong politician and former chief secretary, among other influential figures. According to the message, suggested that the private sector develop the new regional cryptocurrency.
The yuan and yen are expected to represent more than 60% and 20% of the value of the digital currency as they are supposed to The share is calculated on the basis of the “economic scale of the associated economies”.
The Nikkei Asia article mentions this The new idea may have been influenced by Libra’s decision to operate a multi-currency currency called LBR, according to China, Facebook’s cryptocurrency “looks no different from a digital dollar disguised as a coin basket”. He also notes that the Libra has given up the idea of running a stable coin with yen, which means that Japan is likely to be dealing with the East Asian digital currency.
The East Asian cryptocurrency also appears to be in line with China’s intentions to create an autonomous payment network for the US dollar., which is still the most popular medium for international business transactions.
Few details are still available on the digital currency of the Chinese central bank
Details of the digital yuan, a People’s Bank of China’s CBDC project, are still sparse. There is no official launch date yet, although the pilot is being actively conducted in several locations, including the cities of Shenzhen, Suzhou, the new Xiongan area, Chengdu, and the future location of the Winter Olympics.
The digital yuan can be accepted in other countries, although it is currently unclear whether this would overlap with the proposal to develop cryptocurrency in East Asia. A recent article by South Korean media company Yonhap indicates that local traders are ready to accept the digital yuan as soon as COVID-related travel restrictions are lifted and Chinese tourists visit their country again.
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