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London – The announcement by a senior official of the People's Bank of China (the central bank) that the bank is "almost ready" to issue a sovereign digital currency is not a new passenger, although the media n & nbsp; Did not even mention the importance that he deserved, although the announcement was made Saturday.
This announcement could be the biggest spark in the history of the global financial system and could lead to an international race to issue similar currencies before Beijing can escape the main currencies.
The prospects that can be opened by the ruler of Chinese digital currency may be broader than any speculation. However, he is awaiting clarification on the extent of its dissemination and the restrictions that may result. It is also waiting for reactions from major countries such as the United States, the European Union and Japan.
The spark of quality in China was entrusted on Saturday by Moo Changchun, deputy director of the payments department of the People's Bank of China, at a forum held in Heilongjiang Province, in northeastern China. China.
Reports indicate that the Chinese central bank formed a research team in 2014 to explore the possibility of launching a sovereign digital currency in order to reduce the cost of traditional paper transactions and strengthen the control of decision-makers on the market. money supply. But Beijing did not reveal the details of the plans until the statement was published.
Chinese cryptocurrency could lead to an international race to issue similar currencies by major countries
Moo said the issuance of a digital currency would be based on a "binary" system in which the central bank and financial institutions would be legitimate issuers.
He added that the country's digital currency would not rely solely on blockchain technology because currently available techniques would not be able to handle the volume of transactions in China.
The local introduction of cryptocurrency can be very easy, especially because of the widespread payment of electronic payments by China in almost every other country.
The predominance of the dollar in the global financial system, which alone accounts for about 63% of the world's reserve currency weight, is a source of concern for other major countries that have made considerable efforts to reduce the excessive dependence of the global financial system on the world's financial resources. the dollar, especially in light of the heavy US debt at $ 23 billion.
The issuance of the euro in 1999 was the biggest attempt to combat the dominance of the dollar, but could only reduce very little of the mass of global financial reserves.
For at least 11 years, China has been trying to reduce the dollar but has not yet managed to internationalize its currency and is estimated to hold billions of dollars in US sovereign bonds.
To this end, Beijing has entered into agreements with a large number of countries in Latin America, Eastern Europe, Africa and the Middle East, with a view to using bilateral currencies in trade to exclude the dollar from bilateral transactions.
Its sovereign digital currency can achieve what all previous efforts have failed if it crosses borders and is widely used in countries around the world, as an alternative to digital currencies beyond the control of financial authorities.
The Chinese declaration comes at a time when the world is in the grip of an inevitable transition to cryptocurrencies and at a time when a world front has formed against crypto-currencies beyond the control of the sovereign authorities.
The controversy continues to rage over Facebook plans to issue a cryptocurrency, which was the subject of a serious attack that prompted Facebook to threaten to cancel the project because of the risks it posed for the traditional financial system.
But the Chinese digital currency will not find who can support it because it is a sovereign currency linked to the value of the yuan and has no way to face or oppose its issue. The decision unveiled by Beijing appears to be the perfect way out of the traditional monetary system to keep up with the fast-paced world of technology, after all previous attempts have been tainted with deficiencies that threaten global stability.
The best way to open up the prospects for the global financial system is to issue a global digital currency to which all countries will participate during the year, but this remains an ideal solution to the inevitability of the opposition. of Washington in any way ending the dominance of the dollar.
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