2022 Winter Olympics would be the litmus test for the Digital Yuan

It has been known that the People’s Bank of China (PBoC) is adjusting details so that the launch of the Digital Yuan occurs on a relevant date, so that the currency can be used by locals and foreigners in the midst of the sporting event in 2022.

Although to date an exact date is not known for the putting into circulation of this currency issued by the central bank of China, according to the most recent interventions by the officials who are in charge of the project, the aforementioned event could be the ideal situation to put it to the test.

It should be noted that both athletes and foreign visitors could manage it.

On the verge of using the Digital Yuan

In August 2020, it was announced that China was carrying out a series of pilot tests of this digital currency in Shenzhen, Suzhou, Xiongan and Chengdu use was therefore limited to a series of retail transactions.

The giant steps and interest in making it a reality were also demonstrated with cross-border collaborations and currently, through the following statements by Li Bo, deputy governor of the People’s Bank of China:

“For the upcoming Beijing Winter Olympics, we intend to make e-CNY available not only to domestic users, but also to international athletes and similar visitors.”

The above, regarding the celebration of the Boao Forum for Asia, where government, business and academic leaders meet to share perspectives on pressing issues for the region.

It is worth mentioning that, according to what has been said, At no time has the Digital Yuan set itself the objective of subtracting the scope of dominance of the US dollar in its role as a global reserve currency.

Is the digital yuan a threat?

Although several central banks have chosen to integrate the issuance of this class of assets into their portfolios, it cannot be ignored that, in this particular case, there are several details involved that allow us to reflect a little on certain aspects.

On the one hand, it is impossible to ignore the concern that has spread in the United States, since in this administration there is some fear that the impact of its circulation will interfere with the ground that the dollar has already gained.

At the other extreme, there are those who insist that the currency will not guarantee that the anonymity of its holder will be maintained, and that this will be used by the Chinese government to perpetuate the exhaustive monitoring it carries out on its citizens.

Given the speed and efficiency that accompanies this initiative, it is likely that conditions will be created for China assumes economic leadership which some nations are surely going to resent.

First of all, the above, what is more than clear, is that finances evolve hand in hand with blockchain technology and therefore, it is necessary for everyone to open up this knowledge to be attentive to both the risks and the thousands of advantages it involves.