Chinese authorities ramp up efforts to expand use of its CBDC
The digital yuan is being pushed by the Chinese government for a broader use. The e-CNY is issued by the People’s Bank of China and the regulator retains full control of the virtual asset. The digital renminbi, China’s CBDC, has successfully passed numerous trials and tests. Notably, the Chinese regulator is a few steps ahead of many other world’s leading financial watchdogs in the CBDC race. China is now making every effort to expand the use of its virtual national currency among the broader population. Tech giants Alibaba and Tencent are already on board. The country’s two dominant payment systems Tencent’s WeChat Pay and Alibaba’s AliPay will accept the digital yuan as a means of payment, the companies announced. A national roll-out data remains unknown, but China’s authorities are doing their best to popularize the e-CNY. “It feels to me like they’re now ready to push this out wider,” Linghao Bao, an analyst at consultancy Trivium China, said.
The question is whether people are going to use the e-CNY on a regular basis as there are some technical aspects. Thus, to use WeChat or AliPay, people are required to link their bank accounts to the app. However, to pay in the digital renminbi, they will need to register separate accounts and link them to their WeChat or AliPay. “The big question we have is whether consumers are going to use this or not. To me, there is no strong incentive for consumers to switch [from their current systems]. I don’t see any strong incentive because there is still friction to use digital yuan. You have to download the app, sign up, then top up your wallet. I’m not sure consumers want to go through these extra steps,” Mr. Bao concluded.
Bill Gates warns of global economic slowdown
Bill Gates is concerned that the worst may still be ahead. The Microsoft co-founder predicts a global economic slowdown and notes that the world’s economy has already started to weaken. He is sure that rate hikes implemented by central banks worldwide will accelerate the economic downturn, triggered by the Russia-Ukraine conflict and the fallout from the COVID-19 pandemic.
13:54 2022-05-20 UTC+00
World to face food crisis
In the foreseeable future, popular food products such as different kinds of oil and cereals may be in short supply, Business Insider noted.What is more, analysts at Business Insider believe that the world is now shifting to the era of food protectionism.
13:46 2022-05-20 UTC+00
US inflation may spiral out of control
Some analysts suppose that the US may face an inflationary spiral due to unresolved problems, the main of which is surging inflation.Most experts are sure that the Federal Reserve is not able to cope with the existing problems. Being unable to tamp down the skyrocketing inflation, the regulator has no way to boost confidence in the US economy.
12:43 2022-05-20 UTC+00
Swiss voters back Netflix tax and Frontex funding boost
Swiss citizens approved a tax on streaming services and an increase in funding for the European border agency Frontex in a referendum held on Sunday, May 15.The first proposal, commonly known as Lex Netflix in Switzerland, would see streaming services invest 4% of their revenue into Swiss film-making, in line with requirements already in place for national television broadcasters.
06:25 2022-05-20 UTC+00
Apple loses position as world’s most valuable company
Oil giant Saudi Aramco, Apple’s primary competitor, surpassed the iPhone maker and regained the top spot as the world’s most valuable company.Saudi Aramco is a state-owned company generating record profits compared to the largest commercial tech giants. According to Bloomberg, Saudi Aramco’s market capitalization totaled $2.43 trillion.
14:22 2022-05-19 UTC+00