Pingyao, in Shanxi province, was once the financial centre of Imperial China—the birthplace of banks that led the world in remittances and settlements using “tickets” that were a sort of tokenised legal tender. The People’s Bank of China honoured Pingyao, now a UNESCO World Heritage Site, in 2019, with a set of silver and gold commemorative coins. Even as it honours the past, though, China is focused squarely on the financial future. In 2020, the country began testing a digital renminbi (RMB), which could have revolutionary implications for the future of money. Although a virtual RMB probably hasn’t blipped on many CEO radar screens, particularly given the disruptive effects of the pandemic, it’s time to start tracking how the financial environment could shift.
