To lessen Asia’s reliance on a dollar-based economy, researchers from a Chinese state-run think tank have proposed the idea of an Asia-wide digital currency, as reported by Cointelegraph.
According to Cointelegraph, the establishment of a “Asian yuan” token, according to researchers Liu Dongmin, Song Shuang, and Zhou Xuezhi from a division of the Chinese Academy of Social Sciences (CASS), would lessen Asia’s reliance on the U.S. dollar, as stated in an article of the “World Affairs journal” published online in late September.
The researchers claimed that distributed ledger technology (DLT) would serve as the backing of the Asiatoken, which would be tethered to a bundle of 13 currencies, much like previous existing and trialled Central Bank Digital Currencies (CBDCs).
According to the academics, the currencies would comprise those of all 10 Association of Southeast Asian Nations (ASEAN) members as well as the Yuan, Yen, and Won of China, Japan, and South Korea.
“East Asia’s increased economic integration over the past 20 years has created a solid base for interregional monetary cooperation. The conditions for establishing the Asian yuan have progressively come into being, according to the academics’ journal entry, which was obtained by the South China Morning Post.
The nation’s central bank is additionally taking part in Project Inthanon-LionRock, a DLT-supported cross-border payment CBDC trial that also includes the central banks of Thailand, Hong Kong, and the United Arab Emirates, Cointelegraph stated.
On its “Multiple CBDC Bridge” platform, which was under the supervision of the Bank for International Settlements, the experiment witnessed a “successful” transaction of more than $22 million in value in September (BIS).
(With insights from Cointelegraph)
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