Zhou Syochuan: The digital yuan does not threaten the global financial system – Bits Media

Former Governor of the People's Bank of China (PBC) considers, that the US authorities unreasonably see the digital yuan as a threat to the dollar, which is intended only for domestic payments.

Zhou Syochuan (Zhou Xiaochuan), speaking at the Tsignhua PBCSF Global Financial Forum 2022 in Beijing, stated, that the state digital currency of the PRC does not threaten the hegemony of leading fiat currencies and especially the international payment system SWIFT.

Zhou explained, what is digital yuan (e-CNY) will be used only for retail payments within the country. CBDC functionality is intended for individuals and companies, employed in retail trade and services. Therefore, concerns from the government, intelligence services, US regulators and crypto companies, who consider the digital yuan a weapon, former head of PBC considers biased.

To confirm his words, Zhou stated, that so far the RVS does not even have firm confidence, that the Central Bank’s digital currency can be used for international transactions. He admitted, that there is a possibility of adding the necessary functionality in the future, allowing payment with the digital yuan for macroeconomic transactions. But for now it's just a concept, not taken into development by the regulator.

“The world must beware of Cold War thinking, which will harm everyone", - Zhou emphasized.

At the same time, last year China and Hong Kong launched the second phase of testing the digital yuan. This was announced by the Chairman of the Research Institute of Digital Currencies at the RBC Mu Changchun (Mu Changchun). This month the regulator began the third stage of testing the digital yuan, expanding the list of cities and regions, where you can pay for goods and services in state currency. In turn, nine US senators supported the bill, aimed at controlling and limiting the possibilities of using the RVS digital currency in cross-border payments.