China plans cross-border payments

BEIJING:

China’s central bank said on Friday it will explore cross-border payments in digital yuan, and is willing to discuss setting global standards for digital fiat currency to jointly develop the international monetary system. The People’s Bank of China (PBOC) will strengthen data security and personal information protection as it forges ahead with domestic testing of the digital yuan, it said in a white paper that is the first comprehensive disclosure of its plans. China is a front-runner in the global race to launch central bank digital currencies (CBDC) and is testing a digital yuan, or e-CNY, in major cities including Shenzhen, Beijing and Shanghai but has not set a timetable for its official rollout. Many analysts believe the e-CNY will bolster the currency’s global status as China seeks ultimately to break the dominance of the dollar settlement system. “The internationalisation of a currency is a natural result of market selection,” the PBOC said in the white paper, downplaying its global ambition.

Published in The Express Tribune, July 18^th, 2021.

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