Blockchain and a central bank digital currency are two key Fintech areas where the U.S. lags China.
Last week we wrote that Distributed Ledger Technologies (“DLT”) such as Blockchain are a ripe opportunity for a Public-Private Partnership should the Biden Administration move forward with an infrastructure investment plan later this year or early 2022.
China is well ahead of the U.S. on both fronts. The People’s Bank of China (“PBOC”) plans to integrate the digital Renminbi with a China-based blockchain system named “Chang’an Chain.” 27 institutions are on the Blockchain including some of China’s largest financial institutions such as PBOC’s Digital Currency Research Institute and China Construction Bank. The digital Renminbi is scheduled to be launched in time for the Beijing 2022 Winter Olympics.