Central bank digital currency may become a reality, how will China respond?

In the eyes of the International Monetary Fund (IMF), central bank digital currencies (CBDCs) may already be part of the future.
The IMF believes that central banks of all countries may issue central bank digital currencies in the future . According to reports, some central banks (such as Uruguay) have already piloted the issuance of CBDCs on a limited scale, and other countries are also trying and exploring (such as the Bahamas, China, Sweden and Ukraine). Some central banks support private sector legal digital currencies (DFCs) under the regulatory sandbox system, such as Barbados and the Philippines.
The report shows that the motivations for launching central bank digital currencies vary from country to country. Developed countries mainly hope to use CBDC to provide an alternative to cash when the frequency of cash use decreases. For emerging economies such as developing countries, the main purpose of CBDC is to reduce bank costs. However, central banks are not interested in issuing completely anonymous CBDC.
Researcher Zoltan Jakab said in an IMF research review that central bank digital currency may soon become a reality. IMF research shows that its popularity and influence depend largely on its design features. Although there are risks, policies can be introduced to reduce costs and increase benefits.
The People's Bank of China has a five-year research history in the field of digital currency . As early as 2014, the People's Bank of China established a special research group on legal digital currency to study the feasibility of issuing legal digital currency . In 2017, the People's Bank of China officially established the Digital Currency Research Institute in Shenzhen.
In just a few years, the Central Bank Digital Currency Research Institute has built a trade finance blockchain platform and published a series of blockchain patents and reports.
In addition, at the Big Data Expo held in Guiyang in 2019, the PBCTFP trade finance blockchain platform developed by the Central Bank Digital Currency Research Institute was unveiled. It serves the trade finance in the Guangdong-Hong Kong-Macao Greater Bay Area and has been truly implemented. (Financial World)