Digital Chinese RMB launch coming soon

What are the conditions for the spread of the digital yuan?

One of China's four largest commercial banks, Bank of China Governor Lee Rei, said the digital yuan (DCEP), which is currently being tested, will be launched soon.

On the 5th 2020, the internet media “People's Network” broadcasted by Lee Guang, revealing the four conditions necessary for the digital yuan to become mainstream.

・Outstanding efficiency (convenience)

・Low transaction cost

・Sufficient economy with commercial value

・What people accept

He said that these conditions are necessary for the spread of the digital yuan, and concerns about the digital yuan, privacy protection by being able to grasp the flow of money, transactions with anonymity, such as by limiting the amount of money. It was also possible.

In China, payment services such as Alipay and WeChat pay are widespread, and resistance to electronic payment methods via smartphones etc. will be low in the world.

In addition, since the domestic economy is large and it is possible to secure a sufficient market by itself, if the technical problems are cleared, the environment in which the digital yuan will spread rapidly will be higher than in other countries. Can be said to be in place.

Leading the world with CBDC

China is active in the development of CBDC (a digital currency issued by the Central Bank) and has been developing it since around 2014.

The project is proceeding mainly at the Digital Monetary Institute, and it is already being piloted in four domestic cities including Shenzhen.

In May, an attempt is made to pay transportation expenses allowance for civil servants in digital renminbi in some parts of Hebei Province, and the schedule until launch has not been announced, but China is the first issuing country of CBDC. Is expected to be.