The Covid-19 pandemic is speeding up the issuance of cryptocurrencies in the world

Tram Ho

During the last Lunar New Year holidays, the Covid-19 pandemic still caused Chinese people to live under stress. The Chinese government recommends that people limit traveling and meeting. Many businesses fear for their profitable prospects.

Most recently, however, 50,000 Beijing residents have received a small sum of money: 200 yuan or $ 31 in red red envelopes that they can use to shop online or in person.

 Đại dịch Covid-19 đang đẩy nhanh quá trình phát hành tiền điện tử trên thế giới - Ảnh 1.

Chinese officials see this as a step towards something bigger.

As the Covid-19 pandemic is speeding up the digitization process, Central Banks of many countries around the world are increasingly considering promoting the development of electronic forms of conventional money.

In October 2020, Cambodia was the first Asian country to officially launch this system. Many other countries such as Thailand, Singapore or Japan, Korea are also considering research and testing measures.

China’s push to develop the digital yuan has the potential to have the strongest impact on the global economy given the government’s ambitions to internationalize the yuan.

Beijing’s test recently ended on Wednesday. Previously similar testing was done in Guizhou. Thus, the Central Bank of China has distributed more than 100 million yuan. In addition, more e-yuan programs will be planned for the 2022 Beijing Olympics.

China is a relatively advanced country in the application of digital currencies. Hundreds of millions of users use the Alipay and WeChat services, they scan the QR code on the smartphone screen, not spend money on paper money and coins. The digital yuan operates under a similar mechanism.

However, the Bank for International Settlements (BIS) does not think so. Digital currency issued by the Central Bank is referred to as CBDC. A BIS survey in January 2021 found that 86% of 65% of the world’s central banks currently own some form of CBDC. About 60% said they would be able to issue a CBDC for use within the next 6 years.

The group of some emerging economies with weak systems also has their own purposes to pursue CBDCs to help make payments more efficient and improve the efficiency of monetary policy.

Cambodia is an important example, in October 2020, Cambodia announced a payment system called Bakong co-developed with Japanese blockchain company Soramitsu.

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Source : Genk