The former head of the Central Bank of China did not see threats to SWIFT and other currencies in the digital yuan

The digital yuan is primarily intended for the public and merchants, not to replace SWIFT or weaponize the currency. This was stated by the former head of the People’s Bank of China Zhou Xiaochuan, writes Forcast.

The expert stressed that e-CNY not necessarily suitable for cross-border payments. For such purposes, it may be adapted in the future, but in this case, CBDC will still be focused on retail applications.

“The world should beware of thinking in a Cold War paradigm that will harm everyone,” Zhou said.

China has been testing the digital yuan for three years. At the end of 2021, the volume of transactions with e-CNY has reached 87.57 billion yuan (~$13.68 billion), 261 million unique digital wallets registered.

In February 2021, the Central Bank of China and the UAE joined to the “bridge” project for national digital currencies, launched by the regulators of Hong Kong and Thailand.

In April 2022, the People’s Bank of China expanded e-CNY testing program to 23 cities.

As a reminder, Bank of America predicted maintaining dollar hegemony through the issuance of CBDC.

Previously FRB Boston and MIT submitted white paper and the open source code of the digital dollar as part of the first stage of studying its potential release.

The digital yuan is primarily intended for the public and merchants, not to replace SWIFT or weaponize the currency. This was stated by the former head of the People’s Bank of China Zhou Xiaochuan, writes Forcast.

The expert stressed that e-CNY not necessarily suitable for cross-border payments. For such purposes, it may be adapted in the future, but in this case, CBDC will still be focused on retail applications.

“The world should beware of thinking in a Cold War paradigm that will harm everyone,” Zhou said.

China has been testing the digital yuan for three years. At the end of 2021, the volume of transactions with e-CNY has reached 87.57 billion yuan (~$13.68 billion), 261 million unique digital wallets registered.

In February 2021, the Central Bank of China and the UAE joined to the “bridge” project for national digital currencies, launched by the regulators of Hong Kong and Thailand.

In April 2022, the People’s Bank of China expanded e-CNY testing program to 23 cities.

As a reminder, Bank of America predicted maintaining dollar hegemony through the issuance of CBDC.

Previously FRB Boston and MIT submitted white paper and the open source code of the digital dollar as part of the first stage of studying its potential release.