The Bank of China announced that they are seeing greater interest in the digital yuan project than ever before. The project is expected to help China enter the digital race by replacing substantial fiat money with digital yuan.
According to Wang Xin, director of the research bureau of the People’s Bank of China, if the Chinese Digital Currency is successful, a significant part of this success will belong to BTC. Speaking to CNBC, Xin said:
“On the one hand, this success is related to the involvement of more and more central banks around the world in the development of local digital currencies.”
Xin explained that the increased interest in digital yuana may be a result of other countries introducing the national digital currency.
Increasing bitcoin price could explain the increased interest in digital yuan
However, Wang does not give all the praise to those mentioned above. Xin suggests that although the country’s Bitcoin ban has remained functional to this day, the spike and bitcoin price may have equally affected the amount of interest.
“On the other hand, this interest may also be related to the big increase in Bitcoin price.”
Currently, there is no official date for the launch of the Chinese digital yuan, but the country plans to continue accelerating pilot projects that give residents of different regions the opportunity to test the currency in retail stores.
The integration of a Central Bank Digital Currency has become popular among many countries seeking to move to digital.
Since 2020, there has been an increase in activities aimed at accelerating the process of implementing CBDC. Countries such as Japan, Sweden, Switzerland, and the UK started researching, testing and discovering CBDC.
The Bahamas was the first country to issue a Central Bank Digital Currency called the “sand dollar”. The central bank announced that the digital dollar aims to facilitate “inclusive access to regulated payments and other financial services.”
The integration of CBDC has been a success for the Bahamas so far, Mastercard recently partnered with the Central Bank to allow users to “convert digital currency to traditional Bahamian dollars and pay for goods and services wherever Mastercard is accepted.”