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zgx09t

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China’s Central Bank to Run Simulations of Digital Currency Use

China’s central bank has given the green light for some commercial lenders to run trials of its digital currency, according to people familiar with the matter, bringing it a step closer to becoming the world’s first major monetary authority to issue its own digital tender.

State-owned Chinese banks are conducting internal, hypothetical-use tests of a People’s Bank of China digital currency as if it were being used in Suzhou, Xiong’an, Chengdu and Shenzhen, the people said, asking not to be named as they’re not authorized to speak on the topic.

The functions of the “pilot” digital wallets include conversion between cash and digital money, account-balance check, payment and remittance, one of the people said. They added the research is still ongoing and those functions are subject to change.

The central bank didn’t immediately respond to an email seeking comment on the trials.

Why China’s Rushing to Mint Its Own Digital Currency: QuickTake
Central Banks and Digital Coins

With different ideas in mind, some countries are plunging in while others wait and see

China’s central bank has led global peers in development of digital legal tender, setting up a separate research team for the task and filing hundreds of patents. At a meeting earlier this year previewing the work in 2020, the bank said the research is going smoothly, though it hasn’t named a specific timetable for when the currency would be released to the public.

The digital currency will aim to partly replace cash to adapt to the increasing dominance of digital payments in China’s retail sector.
 
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China Revises Trust Industry Rules to Ease Controls on Foreign Investors

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Chinese regulators are set to make it easier for overseas financial institutions to invest in China’s $3 trillion trust industry as the government revises industry administrative rules for the first time in five years.

The China Banking and Insurance Regulatory Commission Tuesday released for public comments a draft revision to rules for administering the country’s trust companies. It is the first revision to the document since June 2015.

Compared with the current rules, the revised version removes an article requiring foreign companies to have at least $1 billion in total assets at the end of the previous fiscal year to be eligible to invest in Chinese trust companies.
 
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CBIRC Hopes to Drive Lending to China’s Small Businesses with New Assessment Measures for Banks

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China’s banking regulator hopes to increase lending to small businesses via the launch of a new set of assessment measures for commercial lenders.

On 10 April the China Banking and Insurance Regulatory Commission (CBIRC) issued the draft version of the “Commercial Bank Micro and Small Enterprise Financial Services Regulatory Assessment Measures (Trial)” (商业银行小微企业金融服务监管评价办法（试行）) for the solicitation of opinions from the public.

According to CBIRC the goal of the Measures is to “better employ the guidance role of regulation with regard to comprehensive, scientific assessment of the financial services work of commercial banks for micro and small enterprises.”

The Measures stipulate that “commercial banks should make the results of assessment a key parameter for examination of micro and small enterprise financial services performance, and each year openly disclose MSE financial services information to the public via social responsibility reports and annual reports.”

The assessment system is divided into four tiers, with indices covering the lending conditions, systems and mechanisms development, implementation of key regulatory policies, products and services innovation and supervisory inspections.

CBIRC said that the results of assessments will be used as a key basis for policy trials and incentive mechanisms in relation to financial inclusion.

“Formulation of the measures is a key measure for CBIRC in driving banks to ease the problems of difficult and expensive financing for MSE’s,” said the regulator.

“The integration of MSE financial service regulatory policy demands and the formation of a multi-valency integrated assessment index system comprised of ‘one list, differentiated weightings’ will guide and spur commercial banks to continue to raise the quality and effectiveness of their services for MSE’s.”

China has been pushing hard for banks to increase financial inclusion and expand lending to smaller businesses – efforts which have stepped up in the wake of the COVID-19 outbreak.
 
Jura The idiot

Jura The idiot

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this is tough, inside
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“If the global COVID-19 situation continues to intensify, in the worst-case scenario, China’s second-quarter GDP may contract again or only show a slight increase of 1 to 2 percent,” Liu said."
 
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I recall someone writing a simple explanation for when the USA does this and how it will harm them. But again I can also blame Beijing's too lax position in waiting American politics out.
 
Hendrik_2000

Hendrik_2000

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duskseeker said:
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I recall someone writing a simple explanation for when the USA does this and how it will harm them. But again I can also blame Beijing's too lax position in waiting American politics out.
Click to expand...

They can surely can do that but it is like shooting your own foot .
Well you should point out the conclusion of the article here it is

Washington is going to use the demands of enormous compensation as a leverage to prevent Beijing from taking advantage of the situation. Therefore, there is no doubt that American courts will grant all claims against the Chinese government.

However, the United States itself is at risk of being the main victims of such a development. Because of the prospect of an American default, Beijing has no choice but to urgently start selling off treasuries.

This could completely destroy the US public debt market – investors will stop buying new bond issues because of the excess supply. Consequently, the Treasury will have nothing to finance a record budget deficit, as well as multi-trillion-dollar anti-crisis support programs for the national economy.
If the Federal Reserve dares to cover these costs only at the expense of the printing press, the position of the dollar as the world reserve currency will be permanently undermined.
 
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Hendrik_2000

Hendrik_2000

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This is excellent video explaining why American are so self center and couldn't care about the rest of the world
And why they have distorted view of China
John Torrente is a U.S. photographer and traveler who now lives in Florida, U.S. Torrente first came to China in 2004, for the reason that he wanted to get closer with the places he did not know. On April 14, he posted a video on a Chinese social media platform and shared his opinion about America's perception of China during the COVID-19 outbreak.

 
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