In an interview with CNBC, Edith Yeung, a partner at blockchain-focused venture capital firm, Proof of Capita, said that China could launch its digital currency within the next 6 to 12 months. China has been working on its central bank-backed digital currency from the last 4 to 5 years.
China’s digital currency a threat to the US dollar
Currently, the US dollar is the standard currency for countries to execute global trade, making it the most important currency in the world. However, China’s digital currency could change things. Edith Yeung believes that China’s digital currency could become a challenge for the US dollar’s global dominance.
In recent months, the trade war between China and the US has escalated to new heights. Yeung believes the Chinese government is doing a great job at driving the adoption of the renminbi, which is another name for the Chinese Yuan. She also mentioned that One Belt One Road initiative could be very beneficial for the Chinese government to use digital currency.
A battle of tech supremacy
Earlier, the Chinese president endorsed the blockchain technology as he urged the country to take the lead role in this field. China has also been working on 5G technology and has spent more money on it than the US. Yeung believes that the US needs to hurry up to have strong thinking and policy, at least a direction for virtual USD.
Commenting on Facebook’s Libra, Yeung said that Libra had woken the central banks all around the world to think about their own official digital currency.