The flagship newspaper for the Chinese Communist Party (CCP) has published a headline opinion piece in its economic section highlighting the role of China’s central bank digital currency in driving high-quality growth.
“The digital renminbi will serve as the new infrastructure for the era of China’s digital economy,” wrote Dong Ximiao (董希淼), researcher from the Fudan University Research Institute, in the article entitled “The Digital Renminbi Aids the High-quality Development of the Chinese Economy” (数字人民币助力中国经济高质量发展).
“It will reshape the Chinese monetary and payments system on the foundation of resolving numerous domestic and foreign challenges.”
Advantages of the digital renminbi highlighted by Dong include:
- Providing stability to currency value, strengthening the fairness and inclusivity of the monetary and payments system; maintaining financial stability and preventing financial risk.
- Better satisfying the needs of the digital economy via innovative developments such as smart contracts.
- Low energy, labour and operating costs, helping China to satisfy the carbon mitigation targets of peak carbon by 2030 and carbon neutrality by 2060.
- Raising the image and status of the renminbi by increasing its accessibility and convenience.
Dong highlighted efforts by China to expedite the usage of the digital renminbi, by means including amendments to the country’s central bank law, an expanded range of trial scenarios and applications, and increased promotion of the digital renminbi to the public.