Coronavirus Outbreak to Accelerate CBDC Issuance, Ex-President of BoC
Nikkei Asian Review
Main page News, Banking, China, CBDC, Crypto Market, Cryptocurrency, Coronavirus
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Feb. 20, 2020

The former head of the blockchain development team at the China Internet Finance Association & ex-president of the Bank of China, Li Lihui, said in an interview with China Daily that in order to prevent and combat the current outbreak of the coronavirus epidemic, the development of the central bank digital currency (CBDC) will certainly be accelerated.

Li claims the prospects for the development of digital currency in the retail business will also depend on the choice of the market, as well as on the efficiency, value, and convenience of the digital currency.

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A similar opinion was proclaimed by Dong Yang, director of the Center for Financial Technologies and Blockchain Research at the Renmin University of China.

Dong said that the overall impact of the epidemic will further accelerate the development of CBDC.

"This is because the frequency of direct contact between people has been significantly reduced, and cash has been withdrawn as a medium for transactions," Dong said.

The professor also believes that individuals will be more interested in using indirect financial transactions, including digital currencies, for a short period of time, and this trend will eventually build user affection.

Digital currencies will definitely take advantage of this and accelerate their adoption and use, Dong concluded.

Previously iHodl reported that the Chinese authorities are actively trying with all their might to curb the spread of coronavirus and are using all possible means for this.

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