China’s Digital Currency Labeled As Potentially Bypassing Western Banking Systems

By Boris Dzhingarov

Jeremy Allaire, Circle CEO, declared that the US is lagging behind the country of China in terms of developing a national digital currency. According to him, this can alter the way in which the Western companies will transfer payments in the future.

After Japan was reported to develop a cryptocurrency network to rival SWIFT, it became clear that Asian countries are interested in creating new technologies that can rival the power of the USD and American companies in general. China is also on the list of Asian countries that are evolving fast compared to the US.

Allaire spoke this week at Global Coin Research and said that China’s development of the renminbi can bypass the Western rules through offering direct settlements. He said:

“Circle also believes that the major reserve currencies of the world, the major trade currencies of the world, would become digital currencies. A digital currency version of renminbi that runs on software platforms that can be run over the internet, it really creates an opportunity for China and Chinese companies… and bypass the Western banking system.”

It was during early August that China announced the fact that it is close to finishing a digital currency project that has been in development for the past year. An official digital currency for the country might be seen soon.

According to Allaire, Circle, a company that launched a USD stablecoin last year, is closely watching developments in China. The digital renminbi is seen as normal in the global financial picture. He added:

“I think the broader concept of the internationalization of the yuan and the belt and road initiative and the desire to expand China’s role as a trade counterparty digital currency is a natural path for that to grow.”

Everyone in the cryptocurrency world is interested in the global evolution of Bitcoin and the national currencies that are sure to appear in the near future. It seems that China will be the first so this will count.