China’s digital yuan moves hint at a wider reboot – MENAFN.COM

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Middle East

China’s digital yuan moves hint at a wider reboot – MENAFN.COM

(MENAFN – Asia Times) TOKYO – When economic historians look back at the exact inflection-point moment when China’s yuan went truly international, July 2021 could figure prominently. On July 16, we learned the People’s Bank of China was exploring cross-border payments in digital yuan. For all the controversies facing President Xi Jinping’s government – including doubts about a”V-shaped” recovery – PBOC officials were working quietly behind the scenes to float the first e-currency backed by the government of a top economy. Though details have come in dribs and drabs, it’s generally believed that Beijing is aiming to introduce the digital yuan in time for the Winter Olympics in February 2022, at least for limited use. But recent days brought new developments that have a clear rubber-hitting-the-road quality. Setting the stage for cross-border digital payments means fuller yuan convertibility might soon be a reality. There seems little logic to a China offering a”yuan-lite” in digital form for very long. At the same time, the central government appears to be endowing local Shanghai officials with unprecedented freedom to enact local laws. And, equally important, to devise tax incentives and steps toward capital market liberalization. This latter step could mean new key industries