China has said it is launching its digital currency “DCEP” to fight Society for Worldwide Interbank Financial Telecommunication system (SWIFT) and Clearing House Interbank Payments System (CHIPS).
The two financial institutions are seen as two major tools used by the United States to exercise “global hegemony and carry out widespread jurisdiction control”, Pandaily has said.
At the maiden Inaugural Bund Financial Summit of 2019 holding in Shanghai, the vice chairman of China Center for International Economic Exchanges (CCIEE), Huang Qifan, made the disclosure, speaking lengthily on the country’s disinterest on the US jurisdictional hegemony.
Huang also spoke on the Facebook’s proposed digital currency Libra, doubting the success of the digital currency. The financial expert hinted that China’s digital currency is about to be unveiled since it is close to completion.
He said companies are attempting to challenge the sovereignty of countries by introducing financial products like Libra. He said the decentralized currency is not a sovereign money as the safety and basis of the asset cannot be vouched for.
“I do not believe that Libra will succeed,” he stated.
The event converges financial experts and leaders from the nook and cranny of the world and is to hold from October 27 to 29, 2019.
"People's Bank of China may be the first central bank in the world to issue sovereign digital currency", declared by Huang Qifan, Vice Chairman of China Center for International Economic Exchanges pic.twitter.com/Q6DRJMPN5G
— cnLedger (@cnLedger) October 28, 2019
Experts at the event are going to be discussing financial inclusion and some other germane issues
He said: “SWIFT is an outdated, inefficient and costly payment system. Since the establishment of SWIFT 46 years ago, the technology has been updated slowly and the efficiency has been relatively low. International wire transfers usually take 3-5 business days to arrive. Large remittances usually require paper documents, which presents additional difficulty for processing large-scale transactions effectively.”
The financial expert said SWIFT is exploiting the world with its monopolistic techniques.
“At the same time, SWIFT usually charges a fee of one ten-thousandth of the settlement amount, and has obtained huge profits by virtue of the monopoly platform,” Huang countered.
Meanwhile, Huang said The People’s Bank of China has been studying digital currency for over 5 or 6 years and the country is closer to launching its cryptocurrency than any central bank.
According to him, digital currency electronic payment (DCEP), China’s version of digital currency, is set for launch.
