Circle CEO, Jeremy Allaire, opined that China has the most open-minded way to deal with CBDCs (central bank digital currencies) to date. Further, Allaire said in a recent interview on Phoenix Chinese News that China’s national bank has the most forward-thinking considering Central Bank Digital Currencies.
China's Phoenix TV interviewed Circle CEO @jerallaire on CBDCs, the internationalization of the Yuan, the rise of USD Coin and the rapidly growing global stablecoin phenomenon.
— Circle (@circle) September 10, 2019
As per Allaire, People’s Bank of China (PBoC) is the only worldwide central bank that is dealing with the CBDC starting from Research and development point of view. Moreover, the Circle CEO proclaimed that the PBoC gives off an impression of being the most noteworthy central bank to initiate a digital currency commercially, summing up that there is nobody else on the planet that is anywhere close to this project.
Regardless, Allaire’s positive declaration about the PBoC activities in the CBDC space comes in the midst of the launch of another Chinese yuan-pegged stablecoin, CNHT, by Tether, a major stablecoin firm. The organization authoritatively reported the news recently, clarifying that the new stablecoin is secured to the offshore yuan, which will allegedly make it free of the fiscal policies of Beijing.
Allaire further showed interest in the potential exchange of the PBoC’s CBDC with stablecoins pegged to the United States dollar. Also, he stated:
For us, we’ve been working for multiple years on the US Dollar coin that’s been growing very fast. And I think that we’re excited to see how things like the Chinese central bank digital currency could eventually interact or be traded with things like US Dollar coin.
Besides, as indicated by unconfirmed reports, the People’s Bank of China is allegedly setting up its first-ever CBDC with Alibaba, online retail giant, Tencent, Internet Giant, five financial associations and one unknown element, as announced in late August. Further, a local news office also affirmed a month ago that the nation is right to step its foot into digital currency space before the end of the current year as the national bank is practically ready with the eagerly anticipated launch of its Facebook’s Libra-motivated digital currency.
Over and above, the US dollar coin has seen enormous development potential until now, and besides, the Chinese national bank’s coin might need to face a severe conflict to challenge it, moreover, there will be a question that individuals, in the end, will use the US dollar coin to trade, opines Allaire with a trace of interest.