China put forward international rules regarding Central Bank Digital Currencies (CBDC) ranging from currency usage to concerning issues like monitoring and information sharing. The financial system needs to be changed to eliminate the threat from cryptocurrencies like bitcoin and to facilitate all types of payments.
One of the proposals made is regarding interoperability between CDBC of different Countries. Another one is regarding the uniformity in information flow and fund flows to facilitate monetary transactions.
While digital currency like bitcoin is gaining more accolade than Facebook-backed Diem, the responsibility is bestowed upon central banks to issue digital cash to pioneer their money control.
The Public Bank of China (PBOC) is trying to be the first central bank to issue CDBC, to aid its attempt to popularize Yuan in the dollar-dominated international market. As asserted by the spokesman, the ideal future should be a fair supply of digital currency to aid the healthy survival of the international monetary system.
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Source: https://www.reuters.com/article/cenbanks-digital-china-rules-idUSL8N2LN46B
