High BTC Prices Boost The Demand For China’s CBDC: Analysis

The high BTC prices boost the demand for China’s CBDC according to the PBOC representative so let’s read more in our latest cryptocurrency news today.

The high BTC prices boost the demand for the CBDC which are among the most notable reasons why people are getting even more interested in the Chinese CBDC according to a PBoC representative. When it comes to developing a central bank currency, China is probably the most advanced country. While carrying out a few tests in the past months, the People’s Bank of China said that the interest in the new technologies is surging but BTC could also have a key role in this.

Some reports claimed that four of every five central banks are now working on launching a central bank digital currency while China is still at the forefront. In a recent interview with the research bureau director at PBoC Wang Xin, the Chinese population is getting more interested in the digital yuan. Part of the reason could be that more central banks are taking part in developing a domestic digital currency.

However, Xin also thinks that BTC will have a key role as well. He asserted that the demand is surging because of the BTC’s massive price increased from $10K to $60K today. Bitcoin’s value garnered more attention from institutional and retail investors towards the entire crypto industry but BTC could be increasing the interest in the space and it is worth noting that, unlike the main cryptocurrency, China’s digital yuan could be highly centralized and operated by local authorities.

The number of real-world trials China launched in the past few months, is the main reason that shows the nation’s advancement on the matter. In the past, PBoC gave away millions of dollars worth of the digital yuan to citizens in various regions and implored them to spend the funds on other merch, foods, and goods. The country’s central bank and Xin confirmed that more tests are coming. Furthermore, he noted that the new trial wave will push ahead with digital DBM pilots and will accumulate more experience.

As we read previously, China proposes global rules on central bank digital currencies back on Thursday and discussed potential uses and implications of the sovereign digital currency. With the COVID-19 pandemic still expanding and exposing all inefficiencies in traditional payments systems, there has been a need to digitize legacy financial infrastructures and with the rise of cryptos over fiat currencies, central banks worldwide started developing their own CBDCs.