Singapore – A Chinese central bank’s former governor revealed that they cooperate with Singapore regarding digital currencies and its retail payments that can provide more opportunities and fewer risks for the residents.
According to Zhou Ziaochuan, the People’s Bank of China ex-governor, they initially focus on retail payments between China and Singapore since they are safer and more efficient in testing central bank digital currencies (CBDC).
While other central banks focus on other areas, such as payment and settlement in cross-border remittances or financial markets, China’s retail stands as a sector with the most urgent needs. According to an exclusive report, the Ex-PBoC Governor has a Chongqing-based meeting this week with other officials to discuss the retail crypto coop.
Furthermore, Zhou also noted that retail payment could give fewer risks to Singapore and China’s residents due to its exchange rates and anti-money laundering rules. The Ex-PBoC Governor‘s comments for China-Singapore CBDC cooperation echo those of the Monetary Authority of Singapore’s Ravin Menon, a managing director who has unveiled its discussion with mainland authorities.
Many critics are not sure whether China’s central bank digital currency experiment will succeed. Currently, it offers over 0,000 Shenzhen citizens a wallet containing around $30. It also banned other blockchain-based money and adopted a rigorous approach to encourage retailer acceptance. According to some reports, any Shenzhen citizens are ready for CBDC, and over two million applied.
Since the pandemic has collapsed the cash around the globe, the money architecture changed. A desire to avoid touching coins and notes has combined a surge in online shopping and the availability of cashless payment options.
There is no doubt that China can be the back of the pact in the CBDC revolution. If it succeeds, the country will surely become the world’s most innovative and powerful nations with the best tech firms.