There’s been quite a bit of speculation about China’s digital yuan‘s potential to be used internationally. But most official announcements have emphasized domestic use of the central bank digital currency (CBDC). Trials of the CBDC are progressing in four regions and the Winter Olympics locations. However, plans issued by one of those four regions, Xiongan New Area, outline the use of the digital yuan or DCEP for cross border trade.
The plans state that it will: “Encourage the use of RMB-denominated settlement in cross-border e-commerce activities, and explore cross-border payments in digital currencies.”
It’s possible the official stance and Xiongan’s plans are not incompatible. It’s a matter of timing. That’s because Xiongan is a new smart city that is largely still under construction. So in the first instance, the domestic use of a digital renminbi is the focus. But it seems that international use is on the cards. Also, any cross border testing would almost certainly require the involvement of the People’s Bank of China, the central bank.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
