China, which largely took control of the Kovid-19 pandemic, decided to accelerate its digital money efforts.
In a statement made a few weeks ago, China Central Bank stated that the digital yuan project will catch up with the Winter Olympics in 2022. However, according to the Global Times, China’s digital money may be available in the much closer future. Cao Yin, one of the blockchain experts in Beijing, says the country’s digital yuan project:
“Financial companies in China can still do business in the US without additional supervision. However, this does not mean that the USA cannot harm the use of yuan. The US still poses a major threat to Chinese financial institutions. China may issue its digital money earlier than expected against a possible sanction from the US. ”
Although the number of Kovid-19 cases in China has declined drastically, the economic effects of the pandemic have still not been resolved. The government is willing to increase the ratio of total budget deficit to national income above 3.6% in order to recover the economy. China is also considering a tax cut of corporate companies of 2.5 trillion yuan (more than $ 350 billion).
When China issues its own digital currency, it will have the opportunity to manage and control the country’s economy much more effectively. According to Cao’s statements, the fact that China started to use digital money this year may help the effects of Kovid-19 to be resolved more quickly.