China wants to allow foreign athletes and visitors to use the digital yuan during the Beijing Winter Olympics in 2022

The central bank of China is looking to allow foreign athletes and tourists to use the country’s digital currency (digital yuan) during the 2022 Beijing Winter Olympics.

China wants to allow foreign athletes and visitors to use the digital yuan during the Beijing Winter Olympics in 2022

Li Bo, deputy governor of the People’s Bank of China, said the upcoming winter Olympics are likely to become the first test of China’s central bank digital currency, or CBDC, by foreign users.

He stated:

“For the upcoming Beijing Winter Olympics, we were trying to make e-CNY available not only to domestic users, but also to international athletes and like visitors.”

The bank previously announced plans to test the digital yuan at its event in August 2020. Furthermore, the PBoC has no intention of replacing the dominance of the US dollar as a reserve currency. reserves of the world.

Li reportedly noted that the central bank focuses on the domestic use of the digital yuan:

“For the internationalization of renminbi, we have said many times that it’s a natural process and our goal is not to replace the U.S. dollar or any other international currency. I think our goal is to allow the market to choose and to facilitate international trade and investment.”

Despite the PBoC’s focus on the domestic digital yuan, China’s central bank is still exploring cross-border CBDC use.

Li said:

“At the same time, working with our international partners. Hopefully, in the long term, we have a cross-border solution as well. China’s central bank now views the major cryptocurrency Bitcoin as an investment alternative.”

After launching its first domestic digital yuan test in 2020, China has begun cross-border CBDC testing in cooperation with central banks in Hong Kong, Thailand, and United Arab Emirates in February 2021. On April 1, PBoC Research Office Director Wang Xin announced that the Central Bank of China has completed the pilot of a digital yuan. First cross-border with the Hong Kong Monetary Authority.

Chinese authorities have repeatedly stressed that the government is not seeking to replace existing fiat currencies including the US dollar with digital yuan.

The United States has taken a conservative approach towards CBDCs given its position as the world’s reserve currency and other CBDC-related challenges such as privacy. The European Central Bank is also still deciding whether Europe needs the digital euro, with ECB President Christine Lagarde expecting the digital currency to be approved as early as the next four years.

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