Deputy Chairman of the China Center for International Economic Exchange (CCIEE) Huang Qifan said the People’s Bank of China will be the first to issue state-owned cryptocurrency in the world.
He stated this at the summit in Shanghai, which was held from October 27 to 29. Financial experts discussed issues related to money management, as well as to financial and latest technologies.
In his speech, Juan Kifan emphasized that the digital currency Libra from Facebook will not be able to develop successfully. He justified his opinion by the fact that decentralized cryptocurrencies have nothing to do with digital sovereign currency. According to Juan Kifan, decentralized coins have no guarantees, and the exchange rate of such coins is unstable. In addition, they do not contribute to improving the social welfare of the country, unlike stablecoin, which will soon release the NBK.
Juan Kifan believes that international payments and settlements between companies need to be revised, and blockchain technology will help improve the sphere of payments. A CCIEE employee also added that the international interbank information transfer and payment system (SWIFT) and the interbank electronic clearing settlement system (CHIPS) are effective only for the United States, as they strengthen America’s dominance in the financial sector.
“SWIFT is an outdated, inefficient and costly payment system. She appeared almost 46 years ago, but there are no changes in her technology. International transfers take about 3-5 days. Large sum transfers require additional work with documentation. In addition, SWIFT charges large fees, ”said Juan Kifan at the summit.
Juan Kifan is confident that the digital currency issued specifically by the state and the Central Bank is the best way to improve monetary policy, namely, to increase the convenience and security of payments, as well as create a new standard for state cryptocurrency, which will depend on state GDP and budget.
“The People’s Bank of China has been exploring the possibility of issuing its own digital currency for several years, and it will be the first bank to introduce it to the world ahead of the Libra coin,” CCIEE Vice President.
It is worth noting that with all its openness to blockchain technology, China is opposed to bitcoin and other cryptocurrencies. However, the recent speech by the head of the PRC, Xi Jinping, on the introduction of blockchain in the field of finance has increased the interest of the Chinese population in cryptocurrencies.
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