Coronavirus Outbreak Causes Delay in China’s CBDC Project | BTCMANAGER
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The coronavirus outbreak is said to hamper China’s plan to launch its central bank digital currency (CBDC) project before the end of Q1 2020. However, officials are reportedly forging ahead with the CBDC plan and are looking to run the pilot test before the end of the year.
Coronavirus Affect Progress of China’s CBDC Plans
Per a report on Global Times on Tuesday, February 25, 2020, the coronavirus outbreak has caused a delay in the progress of China’s CBDC plans. An anonymous source revealed to the local media outlet, saying:
“The coronavirus outbreak has led to postponed work resumption in government institutions, including the People’s Bank of China (PBC). Policymakers and research staff involved in the DCEP project are no exception, which weighs on the development process”
Although the virus rocking China may disrupt the pilot test from taking off in Q1 2020 as planned, stakeholders are confident that tests will begin this year. The report stated that China’s central bank, the People’s Bank of China (PBOC) is prepared, with enough manpower to tackle the delay in the research process.
Shentu Qingchun, the CEO of blockchain company BankLedger and part of the DCEP project team, encouraged the development of China’s sovereign currency. According to Qingchun, virtual currency greatly reduces hand-to-hand exchange between individuals as opposed to fiat currency,