China is all set to launch its own digital currency and by doing so, becoming the first country in the world to issue its Central Bank Digital Asset.According to Huang Qifan, Executive Vice President of the China International Economic Exchange Centre, the currency will be named DCEP (Digital Currency Electronic Payment).
Qifan made the announcement at the inaugural Bund Summit, which is taking place from 27th to 29th October. He also revealed that the People’s Bank of China (PBoC) has been working on rolling out the cryptocurrency for the past 5-6 years.
“DCEP can achieve the real-time collection of data related to money creation, bookkeeping, etc, providing a useful reference for the provision of money and the implementation of monetary policies”, China Finance 40 Forum tweeted.
China Finance 40 Forum (CF40)@ChinaFinance40
“The significance of Digital Currency Electronic Payment lies in that it’s not the digitization of existing currency,but replacement of M0. It greatly reduces the dependence of trading process on accounts,which is conducive to the circulation and internationalization of #RMB. …
Earlier, Chinese President, Xi Jinping embraced the blockchain technology in a statement before the public, saying that China should adopt the emerging blockchain technology.
Things are looking good for China’s first central bank digital asset as the 13th National People’s Congress has also voted for a cryptography law which will come into effect from 1st January 2020.
How, according to a report by U.Today, a source close to the Communist Party revealed that the new currency will not be launched anytime soon. The report further added that China’s local payment gateways like WeChat and AliPay will have a tough time if the state-backed digital currency is launched.