China to Build Global Clearing Network for Mobile Payments, Using Digital Yuan: State Media

RMB internationalization is inevitable, wrote People’s Daily.

AccessTimeIconAug 30, 2021 at 3:48 a.m. UTC
Updated Aug 30, 2021 at 7:18 p.m. UTC

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

China aims to build an international clearing and settlement network for mobile payments using the digital yuan, the People’s Daily wrote in an op-ed Monday.

  • The network will be a “breakthrough point” in the cross-border use of the digital currency, the op-ed said. China also wants to use the digital yuan to improve the monitoring and early warning capabilities regarding cross-border flows of the yuan, according to the article.
  • The internationalization of the renminbi is a necessity for China’s economic development, but also an inevitability given its economic progress, the op-ed said, citing Song Ke, deputy director of the Institute of International Monetary Studies at the Renmin University of China.
  • Official Chinese sources have been reluctant to talk about the central bank digital currency as a vehicle for RMB internationalization, even though state planning documents like the Five Year Plan affirm that internationalizing the national currency is one of the government’s goals.
  • China’s central bank digital currency (CBDC) has been in trials since spring of 2020, and has so far been used in at least $5 billion worth of transactions, including some cross-border payments.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Trending

1
CoinDesk - Unknown
Opaque Platforms and Intertwined Protocols Pose Big Risk to Crypto

Second article in a series about risks we’re thinking about during these crypto down days.

CoinDesk - Unknown
2
CoinDesk - Unknown
Putin Weaponizes Inflation

Examining a recent propaganda speech from the Russian leader.

CoinDesk - Unknown
3
CoinDesk - Unknown
Morgan Creek Is Trying to Counter FTX’s BlockFi Bailout, Leaked Call Shows

FTX’s $250 million credit facility offer – if inked as initially proposed – stood to effectively wipe out all BlockFi shareholders, including Morgan Creek Digital, the firm told its investors.

CoinDesk - Unknown