China’s digital currency won’t topple US dollar ‘so easily’, senior Bank of Japan official says

People’s Bank of China (PBOC) has moved closer to becoming the first major central bank to launch a virtual currency with a series of trials

Biden administration is increasing its scrutiny of China’s progress toward a digital yuan amid concern it could kick off a long-term bid to displace the US dollar

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The People’s Bank of China (PBOC) has moved closer to becoming the first major central bank to launch a virtual currency, rolling out a trial for consumers and businesses in cities across the country. Photo: JD.com

Published: 11:01am, 16 Apr 2021Updated: 11:01am, 16 Apr 2021

A senior Bank of Japan (BOJ) official downplayed the potential for China’s digital yuan to threaten the US dollar’s position as the world’s main reserve currency.

“The dollar’s status as the key global currency won’t change so easily,” said Kazushige Kamiyama, head of the BOJ’s payment systems department and the person in charge of looking into a virtual Japanese currency.

“In fact, the dollar’s advantage may strengthen further if the US goes with digitalisation.”

A report earlier this week showed the Biden administration is increasing its scrutiny of China’s progress toward a digital yuan amid concern it could kick off a long-term bid to displace the US dollar.

The People’s Bank of China (PBOC) has moved closer to becoming the first major central bank to launch a virtual currency, rolling out trials for consumers and businesses in cities across the country.