When economic historians look back at the exact inflection-point moment when China’s yuan went truly international, July 2021 could figure prominently.
On July 16, we learned the People’s Bank of China was exploring cross-border payments in digital yuan. For all the controversies facing President Xi Jinping’s government – including doubts about a “V-shaped” recovery – PBOC officials were working quietly behind the scenes to float the first e-currency backed by the government of a top economy.
Though details have come in dribs and drabs, it’s generally believed that Beijing is aiming to introduce the digital yuan in time for the Winter Olympics in February 2022, at least for limited use. But recent days brought new developments that have a clear rubber-hitting-the-road quality.
Setting the stage for “cross-border digital payments” means fuller yuan convertibility might soon be a reality. There seems little logic to a China offering a “yuan-lite” in digital form for very long.
Read more at “China’s digital yuan moves hint at a wider reboot”