However, PBOC will work with the G20 and other organizations to develop the cross border aspect, taking into consideration the principles of no disruption, compliance and interconnectivity. Just having a two-tier system may not be enough as data sharing arrangements may be problematic as is evident from the latest Chinese cybersecurity moves on Didi and other companies. The unstated challenge to the supremacy of the dollar as an international currency is clear, especially if international agencies are to be involved in leveling the playing field and the stated principle of no disruption. Prevention of bank-runs is through a zero lower bound (ZLB), but on the more thorny issue of capital flight dependent on political, or geographical instabilities, the PBOC hopes to control it through prudent application of monetary policy controls for cross border transfers, through e-CNY. Many of the e-CNY aspects are detailed by the PBOC, but it is art of being detailed without revealing much. Wallet standards are developed by the PBOC and select and authorized intermediaries can create their own wallets. The importance of wallets is clear, wallets enforce tiers- low value and low daily limit transactions can be through non-KYCed accounts, without a corresponding bank account. #China streetjournal ecny wechat pay ecny seriesĬorporate and personal wallets are different, in capabilities, limits and other features.#China streetjournal ecny wechat pay ecny Offline.
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