Accelerating The Application And International Cooperation Of Digital Yuan

According to BlockBeats, an article published in the Economic Daily on May 29th emphasized the need to accelerate the application and international cooperation of the digital yuan. The article suggested strengthening ties and cooperation with economies that are China's main economic and trade partners, economies that have a need to reduce dependence on other major currencies, and economies that require currency diversification in international transaction pricing, clearing, and foreign exchange reserves. The article advocated for the active, prudent, and multi-faceted development of cross-border payment clearing and international cooperation pilots for the digital yuan. It also called for expanding the coverage and application of the digital yuan in regional economic and trade, investment and financing cooperation. This would enhance the inertia and stickiness of using the digital yuan. The article also discussed the need to study and analyze the reserve requirements of trade partner countries for the digital yuan. It suggested that the construction process of the yuan cross-border payment system and the yuan cross-border receipt and payment information management system should better consider helping to promote the digital yuan. Further research was suggested to improve the multilateral central bank digital currency bridge scheme in cross-border fund allocation, international trade settlement, and foreign exchange transactions. This would solve the problems of low security, low transparency, low efficiency, and high cost that objectively exist in several mainstream modes of cross-border payment and clearing.