Beijing looks into setting up digital asset exchange to push the e-yuan

Name: JPG file by digital-only artist Beeple fetches nearly US$70 million at Christie’s auction
Uploaded: 2021-11-26T10:30:20.000Z
Duration: 1 min 20 s
Description: JPG file by digital-only artist Beeple fetches nearly US$70 million at Christie’s auction

The proposal shows the country’s determination to promote its digital currency, says broker

The suggestion is among a wide range of developmental plans for the Beijing municipal administrative centre

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China’s sovereign digital currency project has expanded to a value of 62 billion yuan (US&9.7 billion) since the roll-out of a pilot programme in late 2019. Photo: Kyodo

Georgina LeeandEnoch Yiu

Published: 6:30pm, 26 Nov 2021

China is exploring setting up a virtual asset exchange as the government lays out the next step to complement its pilot of the digital yuan, according to a blue print published on the State Council website on Friday.

The idea is among a wide range of developmental plans for the Beijing municipal administrative centre, an area situated in the north of Beijing which has been carved out as a key plank of the capital’s development up to 2035.

The State Council, China’s cabinet, did not provide details of the proposed digital assets exchange, but analysts believe it would not be for cryptocurrency trading. The country has banned all digital currencies and non-fungible tokens.

Digital assets could mean anything from credit data to tokenisation of bonds or carbon quotas, according to a Hong Kong-based banker who did not want to be identified.

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JPG file by digital-only artist Beeple fetches nearly US$70 million at Christie’s auction

“The latest announcement is likely to be related to the promotion of usage of the digital yuan. It shows the country’s determination to push the digital currency,” said Tom Chan Pak-lam, chairman of the Institute of Securities Dealers in Hong Kong.

China’s sovereign digital currency project, known as the digital yuan or e-yuan, has expanded to a value of 62 billion yuan (US&9.7 billion) since the roll-out of a pilot programme in late 2019, Mu Changchun, director general of the central bank’s digital currency institute, said earlier this month.

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