Chinese government has announced a new set of guidelines in its recent report, which intends to boost the research and development of digital currency based on the renminbi in the Chinese province of Shenzhen. The new guidelines once more highlighted the Chinese government’s evolving positive attitude towards cryptocurrencies.
According to the report, Chinese government is to build a pilot zone for digital economic innovation and development aimed at establishing more flexible, prudent and inclusive regulatory system. This, in turn, intends to improve the economic ability of financial services entities, research and improve the GEM listing, refinancing and mergers and acquisitions restructuring system, and create conditions to promote the reform of the registration system.
This news came out in light of the international perception of Chinese government as harsh-standing against cryptocurrency. However, this allocation of further mandate and opportunity for a scrupulous research and development of cryptocurrencies has revealed that a favourable atmosphere for crypto startups is developing in China’s Shenzhen. Recently, China’s central bank has reiterated its plans to develop its first Central Bank Digital Currency.
The shift in attitude towards cryptocurrency has been recognised by a number of cryptocurrency experts, including Circle CEO, Jeremy Allaire. In an interview to CNBC, Allaire told that crypto world is seeing a softening stance by Chinese government towards cryptocurrencies. Allaire has supported to further digital currency research and the development of mobile payments applications in Shenzhen.
As the report outlines this recent move aims to promote interoperability with Hong Kong and Macao financial markets and mutual recognition of financial (fund) products. In the promotion of the internationalisation of the renminbi, government will attempt to explore an innovative cross-border financial supervision. This move by Chinese government hints at the plausible plans of China to speed up the internationalisation of its currency as well as to take the lead in the establishment of crypto-led global currency while the US government has shown scepticism about Facebook’s Libra.