According to Douglas Arner, director of the Asian Institute of International Financial Law at the University of Hong Kong, international interoperability is becoming the cornerstone of CBDC’s career.
At the Unitize Blockchain conference this morning Arner argued that the links between the different world economies would become “one of the greatest challenges and opportunities” as more countries around the world participate in CBDC projects.
According to Arner The Chinese financial system already has some prejudices about cross-border adoption of the upcoming digital yuan project, such as the renminbi exchange lines that China has set up with dozens of countries around the world in recent years:
“When we think about it [CBDC] China’s proposal is currently largely limited to operating in the context of physical and electronic borders. However, you can imagine how, in the context of these electronic boundaries, if you integrate the system, for example, into the RMB exchange lines that are used in different countries, this type of RMB electronic area can be expanded outside. “
The United States, the EU and China are ready to make the greatest impact
Also, Arner described three financial institutions that appear to have had the greatest impact on the intense careers of CBDCs, which he described as “large central currency banks”: the Federal Reserve, the People’s Bank of China, and the European Central Bank. Elaborated:
These are animals like nothing else. What Canada or Sweden or the UK or Singapore, Australia or Saudi Arabia can do is really interesting and enjoyable, but the rest of the world won’t do it in the context of large economic or financial transactions. “
Arnern decided “There is definitely an element of geopolitical potential, not necessarily competition, but possibly alternatives or even fragmentation in the future.”