On the 25th (local time), Reuters reported that the International Settlement Bank (BIS), an international organization for cooperation between central banks, proposed international rules for the global circulation of central bank digital currency (CBDC), information exchange, and monitoring. Reported this.
According to this, Mu Chang-chun, director of the Digital Currency Research Institute under the People’s Bank of China, made such a proposal at the BIS seminar, saying, “When the flow of information and funds are synchronized, transaction monitoring can be smoothly performed.”
He has already shared this with other central banks and monetary authorities, adding, “We also propose a foreign exchange platform supported by DLT or other technologies like blockchain.”
“The key rule is that to support the stability and healthy development of the international monetary system, there must be adequate supply by central banks around the world,” he said.
CBDC is a digital currency like Bitcoin, but it is issued by the central bank like a legal currency, and 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.
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.
/yunhap news
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