The national digital currency of China dubbed DC/EP has been successfully tested by the People’s Bank of China. However, Fan Yifei, vice governor of the PBoC, has said there are still some areas that need improvement before launching the digital currency to the general public.
PBoC aims to replace cash with digital currency
The People’s Bank of China aims to replace cash with its national centralized digital currency. Several have claimed that the Chinese national digital currency could give competition to the US dollar as a reserve for international trade. The launch of the Chinese digital currency is getting near, but the bank has not revealed any specific timeline as to when the official launch will be. According to local reports, the research and testing processes are almost finished, and the PBOC will “steadily promote the launch and application” of digital RMB, said, central bank officials.
DC/EP is China’s answer to bitcoin.
China has been at the forefront in adopting blockchain and other innovative technologies, including machine learning and artificial intelligence. Many have questioned the intention of the Chinese government behind the digital currency. It could potentially be used as a tool for mass surveillance. The central bank had earlier said that they would not use it as mass surveillance and will provide users with “controlled privacy.”