For several months now, the crypto world has been as well as financially waiting for a new Chinese project. It is, of course, a digital yuan. However, it turns out that there is still some time to wait for the start of the project. Unfortunately, much longer than we expected. It was the coronavirus that delayed all work of Chinese experts.
The coronavirus a yuan in the digital version
The Global Times itself wrote about this problem yesterday. It turns out that the coronavirus significantly delayed the work on the digital yuan.
We can learn that the outbreak of the coronavirus led to a significant postponement of the resumption of work in government institutions, including the People’s Bank of China. Both decision makers and academics involved in the Digital Currency Electronic Payment (DCEP) project are absolutely no exception.
Shentu Qingchun, who is acting as CEO in a blockchain company called BankLedger in Shenzhen and is also working on the digital yuan, told the media that he hopes the central bank will publish an important statement on the project by the end of this quarter. However, he admits that there is not much time left, so it is possible that this key announcement will be announced later.
Cao Yin from the Yangtze Delta Region Institute of Tshinghua University is much more optimistic. He says that one should not worry about the delays that will result.
He thinks that the CBDC itself will be launched later this year, so according to the original plan. Where did that optimism come from? I think it’s about the resources China has. He said that the authorities have been preparing for the introduction of the digital yuan both technologically and theoretically for a long time. He also suggested that the Bank’s Digital Central Currency team (CBDC) has as many staff as possible to make up for the delay caused by the epidemic.
Other central banks
The race in the category that will be the first central bank with the digital currency is at its best. Even if the People’s Bank of China has now caught the rubber, it can still win this competition. So far, the tests on the e-crown are most advanced. Of course Sweden is leading them. The authorities of countries such as Great Britain, France and Japan are also discussing the topic. We cannot omit the European Union from this calculation either.
Coronavirus and cryptocurrencies
In fact, it was the coronavirus that hit the cryptocurrency market quite hard. Although initially the digital assets reacted very positively to the epidemic, and gained on the chart, since yesterday they have been falling quite strongly. For 1 BTC we already have to pay 9000 thousand USD. It is easy to calculate that this translates into a five percent decrease on a scale of only twenty-four hours. This is a very noticeable change. Every one of us, the people who are interested in the crypts, will observe this situation with bated breath.