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After nearly 6 years of research and development, the People’s Bank of China (PBOC) has just said that it will test the issuance of DCEP, also known as “electronic yuan”.
Previously, the executive vice president of China International Economic Trading Center, Huang Qifan, announced that China is developing its own digital currency called DCEP.
But then the People’s Bank of China (PBOC) has not confirmed the launch of DCEP, so many people have doubts about this statement.
However, recently the PBOC has just said it is ready to launch the DCEP digital currency and in 2020 DCEP will be advertised in all cities of China, propagating to the people.
The DCEP will be pegged to the Chinese Yuan and will be controlled by the People’s Bank of China, so the mechanism of action will also be different from bitcoin or other digital currencies.
Commercial banks will have to deposit 100% of their reserves at a central bank in exchange for cryptocurrencies, then distribute them to users. Enterprises will download e-wallets on their mobile phones and top up DCEP e-funds from their accounts at banks. According to PBOC, DCEP means electronic payment digital money.
The two major cities of China, Shenzhen and Suzhou, are already testing DCEP.
If all goes well, the PBOC will become the first Central Bank in the world to issue its own digital currency.
See also: There will be no Chinese digital currency being manipulated
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