‘Company-wise, I only see benefits to the e-yuan. It could make the system more transparent and make taxation, invoicing, compliance, and legal issues easier. In addition, transaction costs should go down, which will save human resources.’
‘Large transactions are under the supervision of the central bank because they reflect the health of the financial system. The PBOC wants to reduce fraud, money laundering and corruption. But the central bank does not care about small transactions. They aren't in the business of trying to track every purchase of lipstick or bubble tea.’
‘Going digital produces huge cost savings. We have already seen the results with mobile payments, which have grown dramatically. Digital RMB can also replace the need to maintain, transfer, secure, and detect forfeit physical bills.’
‘The PBOC and the DCRI are doing extensive trials and testing to assess the security and reliability of the network. Faked e-yuan and frauds have already begun popping up.’
MNCs, already familiar with electronic transactions, may not see immediate impacts from China's digital yuan due to their minimal use of physical cash. However, the e-yuan could offer broader systemic benefits, enhancing transparency and efficiency in taxation, invoicing, and compliance, while reducing transaction costs. The e-yuan represents a pivotal shift in China's monetary policy that is not merely a new payment method but a strategic move to modernise the economy, enhance transactional transparency, and strengthen regulatory oversight. This shift towards a digital currency is not just about internal efficiencies; it's about positioning China at the forefront of global financial innovation, with implications for international trade and investment strategies.
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