China’s Digital Yuan: through the walls of the digital economy
Sophia Cruz • 1 min read
China is determined to pursue the success rate of CBDC (central bank digital currency) through its digital currency electronic payment (DCEP) project. The growing number of people learning about crypto as an investment may have stimulated interest in China’s fintech landscape including DCEP.
The DECP project has been progressing actively in China. The Agricultural Bank and the Industrial Commercial Bank have taken their part in creating consumers’ digital wallets. Local lotteries are now testing the ground of the DCEP. This is just a start as more establishments allow it as a payment platform.
JD.com is one of the few firms that utilize the DCEP for their B2B transactions. The online retail giant has been using digital yuan as payment to their employees and business partners, as well as promoting and accepting digital yuan on its platform as part of its payment method.
More and more companies are partnering with the People’s Bank of China (PBOC) in expanding the digital yuan. Promoting digital yuan will force commercial banks to re-do their business models to adapt to the growing digital economy and so the rest of the world.
In the UK, a CBDC task force has been formed by the government, getting experts to start a study around CBDC. However, the US will not join the pursuit of central bank digital currency anytime soon, according to US Fed Reserve Chairman Powell.