The cryptocurrency development of China will reportedly be primarily beneficial to global payment and domestic retail sectors, as revealed by a former governmental member. 

Particularly, Zhou Xiaochuan – former People’s Bank of China (PBoC) governor and current Chinese Finance Association president – has revealed the 2 sectors, which will see most implementations of the central bank digital currencies (CBDCs), during his speech at the 2019 Caixin Hengqin Forum. 

The first sector will be an Epayment-focused domestic retail system, while the other is global remittances for transactions conducted among businesses. 

Zhou – a renowned professional in the financial sector – believed that China will keep carrying out its initially drafted courses for its digital yuan – which are domestic retail system and payment.

Zhou also heavily stressed on the potential risks that come with CBDCs. Per Zhou, a fiat currency can be considered the “symbol of national sovereignty”, and central banks, entities that possess “super sovereign power”, should display extra precaution in deciding their course of development. 

The announcement was made not long after the finalization of China’s CBDC project in August this year. the PBoC has also notified that details of the launching time for its cryptocurrency is yet to be decided, since it still needs to conduct further research and evaluation.