A former head of China’s central bank has called for the country to “lead the world” in implementing central bank digital currencies (CBDCs) in order to protect its economic sovereignty and gain financial influence.
Speaking at an event hosted by China’s top internet regulator, former People’s Bank of China governor Zhou Xiaochuan said that China should foster the adoption of CBDCs to compete with the U.S. dollar, secure its growing economic power in the world, and expand its foreign economic ties.
Zhou stated that a digital version of China’s currency, the renminbi (RMB), would increase domestic efficiency and allow China to become more influential in international activities. He also said the rise of any digital currency platforms would require global coordination, with China playing a leading role.
Zhou’s comments come as China is already developing its own digital currency as part of a national strategy to try and shift the world’s reliance away from the U.S. dollar. Other nations, including the United States, Japan, Sweden, and the UK, are also working on their own digital currencies.