On October 31, President Xi Jinping released a public statement about the long-term economic and social development strategy of China, in which he proclaimed that the country should take part in the creation of a Global Regulatory Framework for digital currencies and continue to implement technological innovation.
In the statement, President Xi talked about the problems which the country might face in the upcoming years due to the COVID-19 pandemic and the changes that should be made in order to prevent economic losses and ensure progress.
“Now that the whole country is resuming work and production, we should not and cannot simply repeat the past model,” Xi said. “Instead, we should strive to reshape the new industrial chain and comprehensively increase technological innovation and import substitution. This is to deepen the supply-side structural reform. The focus is also the key to achieving high-quality development.”
Last week, China’s central bank released a proposed banking law to legalize the digital yuan and ban any other stablecoins locally. The country’s intentions to popularize its national digital currency became clear when last year the development of the digital yuan was significantly sped up. In mid-October, nearly 50,000 people received a total of $1.5 million worth of the cryptocurrency in a giveaway organized by the government.
In the announcement, the President of China further explained that it is vital for the country to continue developing its models for digitalization of various industrial and socio-political sectors. He further stated that for the success of this strategy, it is important that China proactively participates in creating an international regulatory framework on digital currency and tax.