The idea of digital fiat is one whose time has come, and the Chinese are leading the way. Last year, the Chinese government announced that it would be launching the digital Yuan. This seems to be going on quite fast, and the Chinese central bank has now announced that it was piloting the digital Yuan in cross-border payments between mainland China and Hong Kong.
The announcement was made at a press conference held at the State Council information office of China. This news comes after equally big news of a proposal by China’s central bank digital currency research institute that proposed for global adoption of digital currencies under a streamlined framework.
According to the head of this institute, Mr. Mu Changchun, central bank governors need to work towards having interoperability when it comes to digital currencies. The Chinese central bank was already taking the idea of interoperability quite seriously and has been working closely with different countries, including Thailand, The UAE, and others. The key areas of cooperation are forex and domestic currencies and international payments.
The move by the Chinese government has several far-reaching implications on cryptocurrencies. It is a huge validation that crypto has come of age and that digital payments are the future for starters. This could see more players, both institutional and retail, take an interest in the market. The result could be a massive increase in the value of cryptocurrencies like Bitcoin and the like. The future sure looks bright for cryptocurrencies.