Speaking to CNBC news, professor of international trade and economics Eswar Prasad of Cornell University revealed the People’s Bank of China (PBOC) wants a digital currency to ensure that the payments sector is not controlled by just two powerful firms. However, professor Prasad, feels that the use case for a CBDC in China is ‘pretty weak, on the matter he stated:
CBDC necessary to level playing field
When it comes to facilitating digital payments, there is some worry that these two big payment providers have gained a disproportionate amount of market share, even if there is no actual need for a central bank digital currency (CBDC) on a technical level. Questioned on why China is aggressively pushing for a CBDC if the actual use case is pretty weak, the professor declared: On this note he added: Notably, China’s central bank has been supervising financial platforms heavily since July and August to check that they comply with regulations and taking steps to prevent major financial risks and lower the number of high-risk financial institutions in key provinces. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
