Op-Ed: Yuan Internationalization Will Lead to Growth for Bitcoin
On October 1 of this year, the IMF added the Chinese Yuan (CNY) to the Special Drawing Rights basket of currencies. Only Big Boy currencies are included, and now China is part of the club: USD, GBP, JPY, EUR and now CNY make up the basket. The IMF could not ignore the currency of the world’s second largest economy. In order to be considered, China....
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The Chinese government took several measures in the past year to deal with the recent decreases to economic growth. The measures led the population to look for means to bypass them, and the Chinese government acted again to stop unlawful activities. The final result seems to be driving the adoption of Bitcoin. China’s economy is growing quickly, but the growth is also slowing down. Beijing’s government is dealing with one of the problems that are creating this situation: people are sending money to invest in other countries. In an effort to block this trend and stabilize the economy, the....
The past two years were much harder on the dollar, however. Despite rapid advancement of a digital yuan, China's progress in internationalizing its currency has stalled out in recent months. Per data from SWIFT's RMB Tracker released on Jan. 20, the Chinese yuan (CNY), also known as the Renminbi (RMB) had gained only .02% in international usage between December 2018 and last month. Meanwhile, it had fallen from 1.26% to 1.16% between November and December of 2020.Source: SWIFTWhile not a catastrophe, it's nowhere near the numbers that China has become used to since making the....
A former PBoC official says that his country has taken a cautious approach with the digital yuan. The Chinese government is not seeking to replace existing fiat currencies with its own digital currency, according to a former governor of the People’s Bank of China, or PBoC.Zhou Xiaochuan, the president of the Chinese Finance Association and former PBoC governor, claimed that China’s digital yuan is not intended to replace global fiat currencies like the United States dollar and the euro, the South China Morning Post reported on Dec. 14.Also known as a digital currency electronic payment, or....
Foreign currency prices have an intimate impact on financial markets and this week, China's yuan devaluation came as a reminder of how fragile the Chinese economy is at the moment. A significant financial crisis is developing on the country; it seems that the model of economic growth has reached its natural end. Similar to what happened in Greece, Chinese citizens seem to be buying bitcoin in order to preserve the value of their cash. Many already perceive the unexpectedly sharp devaluation of China's yuan as an opportunity for bitcoin. As the dollar and yuan move further apart, bitcoin....
China wants to allow foreign athletes and visitors to use the county’s digital currency during the Beijing Winter Olympics in 2022. China’s central bank is looking to enable foreign athletes and visitors to use the country’s digital currency during the Beijing Winter Olympics in 2022, according to a top central bank official.Li Bo, deputy governor of the People’s Bank of China, said that the upcoming Winter Olympics could potentially become the first test of China’s central bank digital currency, or CBDC, by foreign users.“For the upcoming Beijing Winter Olympics, we were trying to make....