‘The two main drivers of competition in digital money are geopolitical and technological – and they are intertwined. China is fast becoming the largest economy in the world and is already almost cashless as commerce is done on mobile platforms like Alipay and WeChat pay. China aims to further boost economic growth, whilst increasing state control, as it imminently plans to scale the use of digital yuan. As digital yuan transactions can be monitored and controlled by Chinese government, it could well allow more freedom in its use outside the country. How much boost the digital yuan will give remains to be seen but enough to add urgency on ECB and FED to progress on their competing digital currency projects.’
Read the full article on Finextra HERE.