China’s digital currency is referred to by many names including digital yuan, e-yuan, and digital RMB, in addition to its official name, Digital Currency Electronic Payment (DCEP).
The DCEP isn’t a decentralized cryptocurrency like bitcoin. Instead, the digital yuan is fully backed by yuan reserves, with transactions verified by China’s central bank.
China is already no stranger to cashless payments, with many transactions conducted through digital wallets like Tencent’s WeChat Pay or Ant Group’s Alipay, though the government has been looking to increase its regulatory scrutiny of these fintech giants.
Currently, the digital yuan hasn’t been rolled out nationwide just yet, with only test trials taking place in various cities. Big names in tech, including e-commerce platforms such as JD.com have however already embraced the digital currency, and more are expected to follow suit.
To learn more about DCEP, check out our explainer video:
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