The coronavirus has hit the digital yuan – the Chinese project will be delayed
For several months now, the world of cryptography and finance has been waiting with bated breath for a digital yuan. Now it turns out that we will wait for the start of the project longer than we expected. The coronavirus has delayed the work of experts from China.
The coronavirus and the digital yuan
The Global Times wrote about the problem yesterday. It turns out the coronavirus has delayed work on the digital yuan:
“The outbreak of the coronavirus led to the postponement of the resumption of work in government institutions, including the People’s Bank of China. The decision-makers and academics involved in the DCEP [Digital Currency Electronic Payment] project are no exception (…)”.
Shentu Qingchun, who acts as CEO of blockchain BankLedger of Shenzhen, which is one of the entities working on the digital yuan, told the media that he is counting on the central bank to publish an important project statement by the end of this quarter. He admits, however, 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 Tsinghua University is more optimistic. He says that one should not worry about the resulting delays. He believes that the CBDC will be launched later this year, as originally planned. Why this optimism? I think it’s about the resources China has. He said that the authorities ‘have been preparing for the [digital yuan] market for a long time, both technologically and theoretically’. He also suggested that the Central Bank’s Digital Currency Team (CBDC) has enough staff to make up for the delay caused by the epidemic.
Other central banks
The race in the category “first central bank with digital currency” continues at its best. Even if the People’s Bank of China has now caught the rubber, it can still win the competition. So far the most advanced tests on the e-crown are conducted by Sweden. The authorities of Japan, France, the EU and the UK are also discussing the topic.
The coronavirus and the cryptocurrencies
The coronavirus also hit the crypto market. Although initially the digital assets reacted positively to the epidemic and gained on the chart, since yesterday they have been falling sharply. For 1 BTC you already have to pay a little over 9 000 USD, which translates into a decrease of about 5 percent on a 24-hour scale.