Tuesday, April 13, 2021

PBoC official says high bitcoin price increases the demand for China’s CBDC.

The Takeaway:

Bitcoin's high price could be among the most notable reasons why people are more interested in the Chinese CBDC, said a PBoC representative.

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The People’s Bank of China has said that the interest in the innovative initiative is surging, but bitcoin could also have a vital role in that. In a recent interview, Wang Xin, a research bureau director at PBoC, noted that the Chinese population is increasingly more interested in the digital yuan, and “everyone is paying close attention.” China’s central bank has been working on its CBDC for a long time and has conducted several successful trials. 

 

Xin also believes that bitcoin could also have a role.

Part of the reason for that could be attributed to the fact that “more and more central banks in the world are participating in the development of domestic digital currencies.” However, Xin also believes that bitcoin could also have a role. More specifically, he asserted that the demand is surging because of bitcoin’s massive price increase from $10,000 in October 2020 to roughly $60,000 today. Bitcoin’s value surge garnered the attention of numerous retail and institutional investors towards the entire crypto industry. 

 

 

Bitcoin’s rise brings more exposure to the crypto industry. 

The recent surge in the price of bitcoin has garnered the attention of numerous retail and institutional investors towards the entire crypto industry. Although BTC might indeed be increasing the interest in the crypto space, it’s worth highlighting that, unlike the primary cryptocurrency, China’s digital yuan would be highly centralized and operated by local authorities. As reported earlier, the PBoC gave away millions of dollars worth of the digital yuan to citizens in various regions and implored them to spend the funds on different merchandise, foods, or any other goods. Earlier, PBoC said that there would be “controlled anonymity” in digital yuan transactions. Several from the industry have said that the digital yuan could be a competition for the world’s reserve currency US dollar. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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