Predictions
- Sovereign digital currency will not challenge global primacy of US dollar, but will support Beijing’s engagement with developing countries
- Government will remain reluctant to substantially ease capital controls, over fears this could harm its own currency and financial markets
- Digital currency will contribute to Belt and Road Initiative in countries where traditional banking is underdeveloped but mobile use is rising rapidly
Event
The southwestern city of Chengdu said on 23 February that it will distribute USD 6 million in digital currency to local residents in the largest trial to date of the central bank’s digital version of the renminbi, following similar lotteries held in Beijing, Shenzhen and Suzhou earlier this year.
Falanx Assynt is a global intelligence consultancy and leading provider of geopolitical, strategic and business risk analysis since 2003. Falanx Assynt is part of Falanx Group Ltd (LON:FLX) which, through its subsidiaries, provides cyber defence and intelligence services to blue chip and government clients worldwide.