"Technology is fundamentally disruptive"

Central Bank Digital Currency ("CBDC") is not a well-defined term but can be interpreted as a digital form of central bank money that is different from balances in traditional reserve or settlement accounts. It can be viewed in the form of a Venn-diagram referred to as the money flower (Bech and Garratt, 2017) which has 4 major properties, i.e. issuer, form, accessibility, and technology (see below).   

​

​

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

In China, Wanxiang Blockchain Labs, the harbinger and leader of blockchain technology, is visionary and foresee the coming of CBDC (or it is commonly referred to as digital currency/electronic payment ("DC/EP")) before it is widely known by the public. 

 

The Chinese DC/EP is a proposed digital legal tender centrally issued by the People's Republic of China ("PBoC") and backed 1-to-1 by its fiat reserves, with manageable anonymity and encryption features.

​

Through the digitalization of the RMB, the PBoC aims to improve the effectiveness of its monetary policy, while mapping out a more comprehensive picture of all individuals and businesses across China. Further, another key purpose is to increase both the RMB’s turnover rate and its global reach (internationalization).

​

DC/EP will be a game-changer of our modern financial world.