🔸Beijing was also first to add CBDC related content to the #ISO20022 repository and the Legal Entity Identifier (LEI) will be used in China’s CBDC ecosystem as part of the BRI. 🔸China is leading the research push for standardization of the CBDC ecosystem and reference architecture. 🔸China is also a norm entrepreneur working to set global #data and #CBDC standards through the #G20 and International Telecommunication Union (ITU) respectively. 🔸It’s no secret that initiatives like #mBridge, or the recent overtures made by Xi to the Gulf Cooperation Council in Riyad to price #Saudi oil in yuan on the Shanghai Petroleum Exchange are not so thinly veiled moves to de throne the #dollar.
🔸Distribution through pre-existing platforms (AliPay, WeChat pay, China Union Pay Merchant Services etc). 🔸China’s outbound tourism could also promote the role of eCNY if for example a Chinese tourist could settle with it in an overseas hotel or restaurant chain which has an eCNY machine installed that transacts directly through a PBOC settlement system. A ‘bill in yuan’ approach for Asian and African partners. 🔸Another is through Belt-and-Road ( #BRI) related projects and transactions also to promote #RMB settlement, or through BRI related loans and investments. Disrupting the $500 billion worth of import/export trade between mainland China and Hong Kong SAR through an eCNY-eHKD corridor is one. 🔸There’s different ways the eCNY could make its way out of China. 🔸Not clear yet how evolving rules on sharing government information among government agencies will apply to the eCNY. Amendments to the Law of the PBOC of 2020 also seek to establish an information sharing mechanism with member institutions of the Financial Stability and Development Committee under the State Council. 🔸The government argues this makes it harder for online platforms to harvest user info. 🔸The People's Bank of China states that the system “does not provide information to third parties or other government agencies unless stipulated otherwise in laws and regulations.” Although the PBOC will know a user’s identity for a digital wallet app, transactions conducted through the app will only transmit the wallet ID. Also, foreign visitors can open an eCNY wallet to meet their daily payment needs without opening a domestic bank account. 🔸Unbanked individuals could access basic financial services without needing to open a bank account, which are provided through the wallet feature. There is limited elaboration on what ‘loosely coupled account linkage’ actually means though. 🔸The eCNY is a ‘value-based quasi-account based and account based hybrid payment instrument’ (that’s a mouthful). A recent paper by Heng Wang ‘China’s approach to Central Bank Digital Currency provides a good overview of the current state of play around the #eCNY.
0 kommentar(er)
