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Compared to CBDC, China can benefit more from stablecoins in yuan

With China blocking the way for decentralized cryptocurrencies, Circle CEO Jeremy Allaire believes stablecoins can play a vital role in the proliferation of cryptocurrencies. chinese digital yuan.
Allaire, head of the company responsible for stablecoin USD Coin, in an interview with the South China Morning Post (USDC), backed by the US dollar suggested He said that a yuan-based stablecoin could be China’s best choice to promote the adoption of its national currency.

“If the intention of the Chinese government is to see the renminbi, [yuan] stablecoins used in trade and commerce around the world would be more affordable than a central bank-issued digital currency.”

In 2021, China tightened its use of cryptocurrencies while simultaneously paving the way for the trial, testing and issuance of a central bank-issued yuan digital currency (CBDC). In January 2023, the Chinese government stressed that these are in circulation. about 13 billion yuan digital.
Interestingly, the digital yuan website states that while the currency will replace the dollar, Tether (USDT) and all other stablecoins, the CBDC will not be a stablecoin. The website allows users to exchange cryptocurrencies for digital yuan through MetaMask or its own conversion portal.
Allaire acknowledged that China would not come very close to using decentralized cryptocurrencies and said Hong Kong’s progressive stance towards the crypto industry could signal a devastating support from mainland China.
Circle CEO also noted that the steps taken by various governments and central banks around the world to develop CBDCs. “ancient technology towards a more modern distributed ledger technology” positive, but should not be misunderstood as a trend towards the adoption of decentralized and autonomous systems:

“There are many useful applications, but I see them very differently from the private sector’s work to innovate the public internet.”

However, the digital yuan is crossing Chinese borders. As previously reported by Cointelegraph, Singapore-based and crypto-friendly DBS bank, solution for digital yuan traders It allows Chinese companies to get paid in CBDC.
The service allows customers located in mainland China to receive or collect digital yuan and pay directly to yuan-based bank accounts.

Translation of Walter Rizzo

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