China proposes international rules for’central bank digital currency’ to international settlement banks

Input 2021.03.26 16:30

Reuters reported on the 25th (local time) that China has proposed international rules for the global circulation method, information exchange, and monitoring of central bank digital currency (CBDC) from the Bank for International Settlements (BIS). BIS is an international organization for cooperation between central banks.

CBDC stands for digital currency issued by central banks like legal currency. China has set a goal to commercialize it for the first time in the world, and has already tested the use of digital renminbi several times.

According to Reuters, Mu Chang-chun, director of the Digital Currency Research Institute under the People’s Bank of China, proposed at the BIS seminar, saying, “The flow of information and funds can be synchronized to facilitate transaction monitoring.”

“We also propose a foreign exchange platform that is supported by distributed ledger technology (DLT) or other technologies like a block chain.” Principle”.

Reuters interpreted this move by the People’s Bank as “part of an effort to reduce reliance on the international financial system dominated by the dollar and to internationalize the renminbi.” He added that experts believe that if widely accepted as an international settlement currency, it will actually undermine the position of the dollar, which is an international trade currency, and weaken the influence of the United States.