China may Circumvent The Western Banks With Digital Currency said Circle CEO

China may Circumvent The Western Banks With Digital Currency said Circle CEO

The CEO of Circle, Jeremy Allaire, said China is the only country to take an incremental approach towards Central Bank launched digital currencies (CBDCs). Even the US is left behind China in this matter, and it will alter the way of money transfer for the western companies.

He stated this while speaking in an interview on 9th September with Phoenix Chinese News. From his interview, it is clear that he is assured that China is making substantial progress in the research of digital currencies that will be equivalent to the fiat currency of the nation. He also predicted that Renminbi could soon avoid the western rules through direct reimbursement. The virtual Renminbi will be better suited for the economy of the future world.

He also added his company Circle is also interested in the development of stable-coin as USD. He further said the major reserved currencies and the trade currencies of the planet could become digital currencies. They are keeping an eye on China’s development in this arena. Allaire said his company launched its first dollar-pegged stable-coin in 2018.

As per his statement, China’s People Bank (PBOC) has made a significant development for the launch of digital currencies. And no other nation in the world has made such development so far. At the beginning of this month, the bank publicized that they are at the final phase of introducing the virtual currency.

However, he also added it would be interesting to see how digital currency launched by PBOC competes with dollar-pegged stable-coins.

The news of the digital currency of China has come amid the launch of Chinese Yuan pegged stablecoin, CNHT. Another well-known stablecoin company, Tether backs it. Tether also declared that CNHT would not have to follow the monetary restrictions imposed by Beijing.

The digital currency of the Chinese Central Bank is designed with inspiration from Facebook’s cryptocurrency, Libra. The online retailers like Tencent and Alibaba are among the first few companies to receive the first lot of this highly anticipated digital currency.

Mark Carney, the Chief of Bank of England, said while speaking in Economic policy Symposium that the central bank launched digital currency has the potential to replace US dollar as hedge currency of the world.