Major departments throughout Washington are reportedly increasing efforts to better understand the incoming digital yuan and its potential implications to the broader financial system.
Officials at the Treasury, State Department, Pentagon and National Security Council are upping their scrutiny of China’s central bank digital currency (CBDC), according to a «Bloomberg» report citing unnamed sources.
Particular points of interest include how it will be distributed and whether it could be used to bypass U.S. sanctions, the report added.
Global Financial System
Washington’s increased efforts occur in the midst of China’s ongoing and leading development of CBDCs, having conducted multiple trials with an eye on a broader roll-out for the Winter Olympics in Beijing next year.
Recently, Beijing also made another move towards strengthening its currency capabilities with a joint venture between the People’s Bank of China and SWIFT.
