CDBC Digital Yuan, backed by the government will not support speculation. It will only be available as a mean of payment. The Chinese government has decided to issue CBDC in the country as the Digital Current Electronic Payment (DCEP).
“Digital money will be used for payment rather than speculation,” reported Coindesk at a recent Chinese financial forum in Beijing on Sunday. China’s digital currency has no speculative characteristics like bitcoin. And does not need a currency basket adopted by some Stable Coin.
Previously, the Chinese government denies that it made the digital currency based on Libra. The government claimed that it has been preparing for Digital Yuan since more than 14 years ago.
Digital Yuan vs Libra and other cryptocurrencies
Some analyze that the business has picked up speed after Facebook unveiled its own cryptocurrency Libra project in June. They said the Chinese government was concerned that private-sector-led projects would expand the market.
China has been adamant that it is different from bitcoin and other cryptocurrency currencies. The Chinese government will use DCEP for retail and cross-border payments and payments, according to a former official at the People’s Bank of China quoted by Coindesk.
“Developers say that development is at the end of its life. We have completed the establishment of standards, research and development of functions, and testing of debugging (error correction),” he said. However, the detailed schedule has yet to come.
The People’s Bank of China has announced on its website that it would release DCEP Nov. 20. But then it reversed its remarks and corrected that the Digital Yuan is still in the test phase.
Later, it claimed that it has passed the test phase and ready to launch.
Following China, other countries and region in the world are preparing its own digital currency. European leader has previously stated that it supports digital euro, but not Libra.
