The time for the digital yuan is about to strike. The CBDC (Central Bank Digital Currency) China is now warming up its muscles ahead of the official debut. A debut that should coincide with the performance of the Beijing Winter Olympics, which will take place between 4 and 20 February.
The digital currency can be used not only by the local population, but also by those who will go to the capital to attend the Olympic event. In the background, the threat represented by the digital yuan against the imperial rule of the dollar. Not by chance evoked by the China Daily, a Chinese Communist Party newspaper, in an article published on January 7.
The launch of e-CNY
A further step towards the debut of the Chinese CBDC has been taken in the past days, with the launch of e-CNY, the central bank's digital wallet in the Android and Apple app stores. It is currently only available in pilot regions of the project, but its definitive diffusion should start soon.
Furthermore, Tencent made the digital yuan available in WeChat Pay, the main app used in China. Its users need to open a WeBank digital renminbi wallet using their real name for activation.
A further step in a strategy which, at the end of October, had already led to the opening of 140 million e-wallets. The figure was revealed by Mu Changchun, general manager of Digital Currency Research Institute of the PBoC during theHong Kong Fintech Festival.
The Chinese attack on the imperial rule of the dollar
It is widely argued that the digital yuan is capable of cracking the imperial power of the dollar. A thesis relaunched by the China Daily, in an article that is certainly not without basis.
If, in fact, other countries are also exploring the path of an electronic currency controlled by the central bank, that of Beijing is frightening precisely because of the power of the eastern giant.
In the article in question, the advantage accumulated by China, in the launch of its electronic money. A statement confirmed by Kenneth Rogoff, a well-known Harvard economist, according to whom the United States must make up for no less than a decade in case it wants to continue the Digital Dollar Project. That is the project launched by Accenture and the Digital Dollar Foundation aimed at exploring the possibility of launching a digital dollar in the near future.
The PwC CBDC global index
In further support of what is stated in the article, the China Daily does not fail to cite a report published in April of the year just ended by PWC. Within which the United States is listed in 18th place in the CBDC innovation ranking.
To partial consolation of Washington, it should be noted that the ranking is not led by China, but by Bahamas, the first country to launch its central bank-controlled digital currency. Indeed, Beijing is also preceded by the Cambodia, occupying only the lowest position of the podium.
An unstoppable strategy?
The real problem is that if the Bahamas and Cambodia do not aspire to global leadership, China is not hiding its aims in this regard. Viewed with obvious annoyance from the United States, who have tried in the past weeks to somehow hinder the upcoming winter games in Beijing.
An event to which the eastern giant has devoted great efforts, considering it a real showcase. From this perspective, the digital yuan represents a further step in a strategy that, for now, is proceeding like a real steamroller.