China is closer to Central bank digital currencies (CBDCs) than any other country in the world right now according to the CEO of Circle Jeremy Allaire.
According to Allaire, the populous Asian nation has the most progressive approach to CBDCs than any other country. He expressed this view during an interview with Phoenix Chinese news, where he added that the People’s Bank of China (PBoC) is the only global central bank currently working on CBDCs. He emphasized that the PBoC was appears to be the most significant central bank launching a digital currency commercially.
While stressing the point that no other central bank in the world was anywhere close to the PBoC’s groundwork on CBDCs, he expressed excitement about the potential interaction of the Chinese central bank’s CBDC, with Stablecoins pegged on the US Dollar. He expressed his excitement by saying;
“For us, we’ve been working for multiple years on the US Dollar coin that’s been growing very fast. And I think that we’re excited to see how things like the Chinese central bank digital currency could eventually interact or be traded with things like US Dollar coin.”
The Circle CEO’s glowing remarks and praise of the PBoC, come at a time when the launch of a Chinese Yuan-backed Stablecoin is about to be released by Stablecoin firm Tether. The imminent release was announced on September 9, with the company revealing that the Yuan-backed Stablecoin would be free from the monetary policies of Beijing since it is backed on the off-shore Yuan.
Allaire had previously also spoken highly of a digital currency version of China’s national currency- renminbi, stating that it had the potential to bypass the western banking system. The renminbi is widely thought to be China’s response to Facebook’s Stablecoin, Libra. Stablecoin season seems to be upon us with more and more Stablecoins being launched.
Image Courtesy of worldatlas.com