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According to a statement by Guo Weimin, Bank of China’s chief scientist, the economic turmoil caused by the pandemic is one of the reasons why Chinese corporations should urgently shift to the use of digital currencies, stating:<\/strong><\/p>\n “There will be a lot of challenges from the pandemic that will make good cases for the use of digital currencies.”<\/strong><\/p>\n<\/blockquote>\n Guo had also said that the importance of implementing the digital currency program lies in its ability to make it easier for the government to monitor cash flow and enforce financial regulations.<\/span><\/p>\n \u201cRegulatory capacity and traceability should be the key focus given the current economic situation, as this has become rather urgent,\u201d Guo noted.<\/strong><\/p>\n<\/blockquote>\n Experts believe that if the shift is successful, it will move more developments on the currency towards finding better use cases for it, benefiting businesses and government services in the long run.<\/span><\/p>\n According to Zhou Ziheng, chairperson of the Zhejian Modern Digital Finance Research Institute, the corporate side of shifting to the digital yuan would involve the transition of corporate assets and finances to digital finance. This is what sets it apart from the mere deployment of digital payment services.<\/span><\/p>\n It has been reported recently that China is already doubling its efforts to expand the trial for their \u201cdigital yuan.\u201d The lead for this effort is the People\u2019s Bank of China, which has been reportedly pushing through the Digital Currency Electronic Payment (DCEP) program to make it in time before the Winter Olympics in Beijing.<\/span><\/p>\n\n
Guo: Better for the Enforcement of Financial Regulations<\/strong><\/h2>\n
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China\u2019s Digital Currency Initiatives<\/strong><\/h2>\n