By On November 12, Jack Lee of HCM Capital said in an interview with CNBC that there could be a launch of China’s Central Bank Digital Currency (CBDC) in the next two to three months.
According to Lee, Beijing has developed the Digital Currency Electronic Payment (DCEP), a system that would allow its central bank to issue a digital currency to commercial banks and third-party payment networks by Alipay and WeChat Pay.
He added that the launch could start as a trial and is not meant to replace fiat money entirely.
HCM Capital has invested in several blockchain start-ups. It’s backed by Taiwanese electronics manufacturer Foxconn, which is one of the top 10 technology companies.
China On The Forefront of Blockchain Development
News that the CBDC has already developed a hybrid system, called ‘Digital Currency Electronic Payment’ (DCEP), which will allow the bank to work on already existing payment and banking infrastructures, only emphasizes China’s resolve to spearhead blockchain development in the region.
According to a recent report, the country will increase its blockchain investments, which are expected to surpass $2 billion in 2023. The news may not come as a surprise as the total interest in blockchain tech has risen after President Xi’s endorsement a few weeks ago.
China’s Digital Currency Pressures Other Governments
In another interview with CNBC on November 11, 2019, Daniela Stoffel, the Swiss state secretary for international finance, said that China’s development of digital currency has been putting pressure on other countries to develop their own version for a while now.
Stoffel told an audience at the Singapore FinTech Festival that in addition to regulation, the potential rise in national digital currencies would bring about questions on the roles of national fiat currencies and central banks, something that should also be discussed internationally.
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