- China’s ‘digital yuan’ may be released sooner than expected due to the geopolitical effects of the coronavirus.
- China hopes to use the ‘digital yuan’ (DCEP) as an alternative to the dollar.
The Chinese government has been working swiftly to digitize its currency.
After adopting blockchain technology as part of its national program last year, it became clear that China’s own ‘digital yuan’ (DCEP) would someday be released. However, with the coronavirus now throwing a wrench in global events, the rollout may come sooner than anticipated.
As an industry insider told, the post-coronavirus world has accelerated the need for digital currencies.
According to the source [Global Times].
“[The] US may still pose widespread threats to Chinese institutions and impact the yuan’s standing in international settlement.”
This is why work on the DCEP may now be accelerated.
Indeed, blockchain development in the country has sped up. Currently, four cities are carrying out pilot tests of the DCEP, according to the People’s Bank of China.
One city, Suzhou, even plans to dedicate a whole development district to blockchain technology.
If all plays out as planned, China could be the first state-backed digital currency to be widely used.