China’s Digital Currency Expected to Be Released Soon

Jack Lee, the founding managing partner of HCM Capital, has said that China’s Central Bank Digital Currency is available and is expected to be released in 2-3 months.

In an interview with CNBC that aired on the 11th of November, Jack indicated that the People’s Bank of China will utilize the proposed asset in strengthening its oversight over cash flows.

Is the Chinese CBDC Available?
Jack said that the PBoC already monitors the movement of money through serial numbers on banknotes and that blockchain would make this process even more efficient. He also pointed out that China developed a Digital Currency Electronic payment system, which is a hybrid of the CBDC and uses the pre-existing payment and banking structure.

Jack said that the PBoC’s currency is available and will be released in 2 or 3 months. However, in a previous announcement by the PBoC, they said that the currency has no set a release date.

Governments Under Tension to Develop CBDCs
In another interview with CNBC on the 11thof November, Daniela Stoffel, the State Secretary for International Finance of Switzerland, said that China’s CBDC was not unexpected. When asked if the development from China was putting pressure on countries to do something similar, Daniela said that the pressure has always been there, explaining that nations are now realizing that developing a native digital currency is the next big agenda for global advancements.

Daniela went on to say that blockchain has its shortcomings and that money laundering problem has to be dealt with. She also proclaimed that authorities should foster the spirit of collaborating with startups more and guide them through uncertainties.

Some weeks ago, the Standing Committee of the NPCC has legislated a rule guiding cryptography which will become effective from the 1st of January and might create an entry for its CBDC.