Digital currency development picks up speed worldwide
- 4 years ago
세계 최초 CBDC '디지털위안' 성큼...주요국 견제구에 '전운'
Our next story is about how a growing number of countries are rushing to issue digital currency, paving the way towards a world with a cashless future.
For more on this, we turn to Lee Kyung-min from the Korea Times who is on the line for us.
Good morning Kyung-min, let's begin with China which took a big step forward?
According to local media outlets, PBOC, the Chinese central bank, in cooperation with the government in Shenzhen, handed out $1.5 million of the new digital currency, Oct 12 (local time), to a total of 50,000 out of over 1.91 million citizens that participated in a lucky draw.
Each winner can spend 200 yuan at over 3,000 retail outlets.
The giveaway came shortly before Chinese leader Xi Jinping's visit to Shenzhen, organized to celebrate the 40th anniversary of the country's establishment of its first special economic zone.
It was an indication that Beijing is stepping up efforts to bolster the yuan's status as a global currency amid an increasingly digitized economy there.
What is notable about China's move is that it seeks to replace paper money with digital currency in stages.
China expects that the new currency will be used to make payments for goods and services of small monetary value for the time being.
But it will seek to circulate the new currency for digital transactions worldwide as part of a long-term plan to fundamentally reshape the U.S. dollar-centered global economy.
I'm hearing that central banks in Russia and Japan are also gearing up similar efforts?
According to reports by local news media outlets, Russia's central bank officially confirmed Oct. 13 that it plans to issue a CBDC by publishing a consultation paper on the digital ruble, adding that the digital ruble will be an additional form of money alongside cash.
It is reportedly considering using the digital ruble to pay salaries and benefits.
But at least two years will be needed for the new currency to be issued.
Similarly, the Bank of Japan, Japan's central bank, said Oct 10 (local time) that it would begin a three-stage test of digital currency next year.
The BOJ said that it has no plans to issue a CBDC, but stressed that it will increase digital currency operation capabilities in response to China's similar move.
And Kyung-min, What is the latest with Korea's central bank?
The Bank of Korea said Oct 7 that it will initiate a blockchain-based CBDC pilot program next year when the currency issuance and return will be undertaken by the central bank, whereas circulation will be managed by private financial institutions.
The BOK said the circulation of currency will have to be mediated by private financial services firms notably banks - similar to how cash is currently circulated, and developments including strengths and drawbacks will be monitored and analyzed to determine the feasibility of the program.
Thank you, that was Lee Kyung-min, from the Korea Times, reporting for us.
Our next story is about how a growing number of countries are rushing to issue digital currency, paving the way towards a world with a cashless future.
For more on this, we turn to Lee Kyung-min from the Korea Times who is on the line for us.
Good morning Kyung-min, let's begin with China which took a big step forward?
According to local media outlets, PBOC, the Chinese central bank, in cooperation with the government in Shenzhen, handed out $1.5 million of the new digital currency, Oct 12 (local time), to a total of 50,000 out of over 1.91 million citizens that participated in a lucky draw.
Each winner can spend 200 yuan at over 3,000 retail outlets.
The giveaway came shortly before Chinese leader Xi Jinping's visit to Shenzhen, organized to celebrate the 40th anniversary of the country's establishment of its first special economic zone.
It was an indication that Beijing is stepping up efforts to bolster the yuan's status as a global currency amid an increasingly digitized economy there.
What is notable about China's move is that it seeks to replace paper money with digital currency in stages.
China expects that the new currency will be used to make payments for goods and services of small monetary value for the time being.
But it will seek to circulate the new currency for digital transactions worldwide as part of a long-term plan to fundamentally reshape the U.S. dollar-centered global economy.
I'm hearing that central banks in Russia and Japan are also gearing up similar efforts?
According to reports by local news media outlets, Russia's central bank officially confirmed Oct. 13 that it plans to issue a CBDC by publishing a consultation paper on the digital ruble, adding that the digital ruble will be an additional form of money alongside cash.
It is reportedly considering using the digital ruble to pay salaries and benefits.
But at least two years will be needed for the new currency to be issued.
Similarly, the Bank of Japan, Japan's central bank, said Oct 10 (local time) that it would begin a three-stage test of digital currency next year.
The BOJ said that it has no plans to issue a CBDC, but stressed that it will increase digital currency operation capabilities in response to China's similar move.
And Kyung-min, What is the latest with Korea's central bank?
The Bank of Korea said Oct 7 that it will initiate a blockchain-based CBDC pilot program next year when the currency issuance and return will be undertaken by the central bank, whereas circulation will be managed by private financial institutions.
The BOK said the circulation of currency will have to be mediated by private financial services firms notably banks - similar to how cash is currently circulated, and developments including strengths and drawbacks will be monitored and analyzed to determine the feasibility of the program.
Thank you, that was Lee Kyung-min, from the Korea Times, reporting for us.