Other obstacles to the application of digital currency, anti-money laundering, anti-terrorist financing, and drug transactions that are of international concern are all worthy of China’s attention. In addition, China has one more concern: the issue of gambling transactions.
Regarding cross-border payment, Zhou Xiaochuan said that when Libra proposed to use cross-border remittance as the main application target, he suggested not to do it in a hurry, because there are many untrusted or suspected practices. In his view, the real difficulty of cross-border remittance is not technical, but may also involve exchange, inward and outward management, etc. For example, there are some Mexican workers in the United States. If they send money back home, Libra is very convenient, but Libra cannot be easily used in the retail market and needs to be converted into Mexican pesos. Therefore, there are still some problems with Libra’s focus on remittance, and more attention should be paid to the application of the retail system. Libra 2.0 is said to be backed up by the U.S. dollar, but even if Libra is backed up by the currency basket, because developing countries are worried about the dollarization of their currencies or other problems, things are not simple, and it is not just that there are obstacles in the technical system.
Based on the above research and analysis, Zhou Xiaochuan believes that if digital currency is to engage in cross-border transactions, it should be based on retail. In the case of retail-based, respect the policies and legal regulations of each country, respect the currency sovereignty of each country, the exchange rate system, and the relevant exchange and remittance regulations. Relying on technical measures, many problems can be solved at the moment of payment, which is also very convenient. For example, in the payment link, there may be smart contracts or payment conditions control regardless of whether blockchain technology is used or not.
In the field of digital currency, Asia is more active in East Asia, and in addition to ASEAN, where the conditions of each country are relatively large, the policy and regulatory environment is also relatively large, and the level of development is also different. In this case, China’s digital currency development can move forward steadily and slowly. First establish a solid retail payment system. On this basis, first focus on the payment of current items such as cross-border tourism, while respecting the psychology of some countries to prevent dollarization. In this process, the internationalization of the renminbi must not be based on compulsion. Don’t let people worry about the renminbiization of the currency. The central bank should focus its energy on maintaining the clearing link of cross-border payment cooperation.