Central Bank of China has made choices regarding the country’s ongoing crypto crackdown, stating that the crackdown will continue in the second half of 2021, the further crackdown is to “maintain” rather than strengthen the current one.
A consensus was reached yesterday at a conference to “keep” high pressure on digital currency trading in China by encouraging and enabling trade and exchange platforms to follow regulatory standards and correct their operations.
The Chinese central bank is unlikely to make any hard and fast policy changes in the second half of the year to deepen the crackdown on cryptocurrencies. Rather, the conference has suggested that the previously imposed regulations will be monitored.
Colin Wu, a Chinese journalist, tweeted that the meeting highlights imply that no new rules would be implemented, but that present regulations will be maintained.
The meeting emphasized that the crackdown on crypto in the second half of the year is to “maintain” rather than strengthen, which may imply that there will be no big new policies, but the continuation of current policies. https://t.co/9X2bgOCBym
— Wu Blockchain (@WuBlockchain) July 31, 2021
The discussion focused on China’s cryptocurrency crackdown and CBDC development, or the digital RMB. Working on foreign currency cooperation and the development of the offshore RMB market is one of China’s key priorities for entering the international arena.
The central bank plans to expand its cross-border trade and investment pilots as part of its worldwide expansion by involving more regions in the project.
Furthermore, the bank intends to promote foreign debt registration and management reform, which will involve the expansion and revision of management procedures for foreign businesses issuing domestic bonds.
CBDC will help to internationalize the RMB.
China’s desire to internationalize its CBDC is expected, given the country’s promotion of the Digital Renminbi (e-CNY) as a means of making the RMB the world’s third-largest currency in terms of commerce, settlements, and international reserves.
Before putting the CBDCs to the test during the 2022 Winter Olympics in Beijing, the digital currency will be put through rigorous pilot projects and expanded into cross-border e-commerce.
“According to IMI research, the RMB International Index (RII), an indicator of the internationalization level of the Chinese currency created by the institute in 2010, rose to 5.02 by the end of last year from 0.02 a decade ago.”, reported state media China.org.