Chinese economists suggest creating a new Asia-wide digitalcurrency.
Experts from an economic institute in China have circulated the idea of creating a blockchain-powered digital currency that could lower Asia’s reliance on the greenback. The initiative comes against the backdrop of an expanding digital yuan pilot, and after recent trials of cross-border payments with state-issued digital currencies in the region.Chinese government researchers have proposed the introduction of a new digital currency in Asia in order to reduce the region’s dependence on the U.S.
According to Song Shuang, Liu Dongmin, and Zhou Xuezhi from the Institute of World Economics and Politics under the Chinese Academy of Social Sciences, the digital token would be pegged to a basket of 13 currencies, including the Chinese yuan, Japanese yen, South Korean won, and those of the 10 members ofWeighting for each could be similar to that of the International Monetary Fund’s special drawing rights that serve as an international reserve asset, the report details.
“More than 20 years of deepened economic integration in East Asia has laid a good foundation for regional currency cooperation. The conditions for setting up the Asian yuan have gradually formed,” the researchers wrote in an article published in August by the World Affairs journal — an edition affiliated with the Chinese Ministry of Foreign Affairs — and then posted online in late September.This isn’t the first initiative to create a regional currency in Asia.
The latest initiative, if realized, is likely to be led by China, which is currently the world’s second-largest economy and is constantly expanding the pilot area for its own sovereign digital currency, the digital yuan. The People’s Bank of China recently announced that e-CNY payments hadAlthough the Chinese government maintains that its central bank digital currency (
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