China Outlined Plans for Development of Shenzhen Special Economic Zone, Which Includes Promotion of Digital Currency
The Central Committee of the Communist Party of China on 18th August laid out the strategies for the future improvement of the Shenzhen Special Economic Zone, which includes the research and development of digital assets and the national cryptocurrency dependent on the renminbi.
Especially, the news comes when the Chinese government declared that its national bank digital currency, which took five years is taking shape, is about to be revealed. In the meantime, China proceeds with its restriction on listings or exchanging of any cryptocurrency, which also includes Bitcoin.
A Major city in south China’s Guangdong Province, Shenzhen, is the nation’s first special economic zone. Shenzhen has a population of around 13 million, and its gross domestic output is 2.42 trillion yuan (roughly about 346 billion U.S. dollars) in 2018, which increased 7.6 percent every year.
According to a document, regardless by 2025, Shenzhen will be one of the main cities on the planet as far as quality, Economic strength, and development. Moreover, its knowledge of research and development, industrial innovation, ecological environment, and the quality of public services will be exceptional.
Moreover, Shenzhen is generally known for the manufacturing of Hardware, which is playing an important role in helping China to execute its Greater Bay Area strategy. China’s DC/EP (Digital currency/electronic payment framework) will finally replace the yuan and predicted to help in making its currency adoption universal.
The city will support the research of the digital currency, and fintech applications, which also includes mobile payments. Furthermore, the guideline did not give more insights about what the local government will perform a study on the digital currency. But, the guideline demonstrates precisely how digital fiat currency is essential for China.
China has plans to promote the remodeling of the registration system of the ChiNext board, which is a Nasdaq-style leading group of the Shenzhen Stock Exchange, which was set up to pull in fast-developing and innovative developing enterprises. Other improving sectors like 5G, cyberspace technology, Artificial intelligence, and biomedical innovation will get support from the city.
In early August, the Vice president of national bank’s Payment and settlement division, Mu Changchun said that China’s digital fiat currency planned is “nearly ready” for launch following five years of research and development work.
Shenzhen turned into the nation’s first Special Economic Zone in 1980. Organizations in the region are liable to fewer regulations and less red-tape. There are benefits of incentive and taxation to attract foreign ventures.