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PBoC says China needs to become the first country to launch a CBDC.

A Chinese city is handing out virtual red packets of money to its citizens as part of the drive to launch the national digita
A Chinese city is handing out virtual red packets of money to its citizens as part of the drive to launch the national digital yuan.

In an article published on the weekend in China Finance, a magazine run by the PBoC, the central bank said China needs to break the U.S. dollar dominance and internationalize the national currency. Reuters first reported the news. “China has many advantages and opportunities in issuing fiat digital currencies, so it should accelerate the pace to seize the first track,” the report stated. It further added that digital currency issuance would become a “new battlefield” of competition between countries. Founder junior associates of many crypto companies have opined about CBDCs.

PBOC’s digital currency research institute filed 130 patent applications.

The report further revealed that China’s digital currency research institute’s central bank had filed 130 patent applications related to digital yuan as of April. The country is all set to launch its digital currency as state-run commercial banks have reportedly started testing a digital wallet. The central bank began researching and developing digital yuan six years ago, and its official launch date remains unknown. Several economists and experts have claimed that the Chinese digital yuan could threaten the U.S. dollar’s global dominance.

The China Finance article argued that improved data feedback from the digital currency would help enhance monetary policy transmission, which would support economic recovery in the post-pandemic era.

Central banks across countries explore CBDCs.

Since Facebook announced its crypto project last year, central banks in many countries have started to take digital currencies more seriously. Central banks in many countries are actively working on their national digital currencies. As reported earlier, the Bank for International Standards revealed that CBDC was more searched than bitcoin and Libra this year amid the ongoing global pandemic. Roberto Campos Neto, the president of Banco Central (Brazil’s central bank), stated that they would launch their national digital currency by the year 2022.