China May Explore New Silk Road/BRI CBDC Adoption – Digital Yuan Going Global?
Beijing is getting bullish about the cross-border use of the digital yuan – with Chinese experts now talking about BRI/“new Silk Road” CBDC integration.
Per the Chinese Securities Journal, Li Jianjun, the Vice President of the Central University of Finance and Economics, spoke about the e-CNY’s role in BRI “financial cooperation” this week.
Li said the CBDC has “broad application prospects” in the BRI, China’s landmark global infrastructure development strategy.
The academic urged policymakers to “build the economic, cultural, and policy mechanisms” required to “implement” the digital yuan with the project.
Li called on Chinese parties to “consolidate the technology, facilities, and rules” needed to realize the “implementation of digital yuan on the ‘new Silk Road.’”
The Belt-Road-Initiaive (BRI) is also known as the “new Silk Road” and the “One Belt, One Road” drive.
The initiative is a foreign and economic policy project spearheaded by Chinese President Xi Jinping.
It was created in 2013 and has seen China invest in infrastructure and communications networks in countries all over the world.
The BRI has seen China become the world’s biggest bilateral lender.
And as part of the loan deals China has struck with nations, Chinese lenders have allowed debtors to swap local currencies for the yuan.
Observers have long speculated that China’s international end goal with the digital yuan involves using the CBDC to power cross-border trade.
Allies such as Russia have spoken openly about the possibility of conducting cross-border trade with interoperable CBDCs.
Beijing has also been working on various international CBDC “bridge” projects with other central banks.
But until very recently, the central People’s Bank of China (PBoC) was claiming
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