Interest in the digital yuan project (DCEP) is partly based on the rise in the price of the first cryptocurrency. This view was voiced by Van Xin, head of the People’s Bank of China’s research arm, according to CNBC.
The official noted a “strong” interest and “close attention” to the central bank’s digital currency.
“On one hand, this is related to a growing number of similar projects around the world. On the other — it could be the result of significant movements in Bitcoin’s price,” Van said.
The government’s negative stance toward cryptocurrencies at the official level remains unchanged. In 2017 they imposed bans on Bitcoin exchanges and ICOs.
In December 2020, Chinese media described ‘hype’ around new Bitcoin records, but later noted a deterioration in gold prospects in light of this backdrop. In March 2021, authorities in China’s Inner Mongolia proposed to ban mining of cryptocurrencies.
Van said China plans to continue gaining experience within pilot projects for distributing the DCEP. He did not specify precise timelines for nationwide rollout.
According to local media, the central bank will finish developing the necessary norms and rules by the end of 2020. The regulator proposed amendments to legislation that provide for the legalization of the digital yuan and prohibit the issuance of tokens tied to it.
After lotteries conducted from October 2020 to February 2021 distributing the DCEP among residents of Shenzhen, Suzhou, Chengdu, China began to test digital wallets in yuan.
How China managed to become a leader in monetary innovation thanks to the digital yuan (DCEP)
Subscribe to ForkLog’s channel on YouTube!