Launch of e-Yuan towards the end of cash in China

Driven by a desire to maintain its leading position in technological advancements, China will launch its own virtual currency designated as. DCEP (Digital Currency Electronic Payment). The Chinese government has startd pilot projects such that certain public sector allowances have now been paid in virtual currency. (DCEP) since April 2020. Four cities with a high concentration of population in China are concerned by this experiment with virtual currency (Shenzhen, Chengdu, Xiong’an and Suzhou), and 19 catering and retail companies will also participate in the pilot project including McDonald’s, Starbucks and Subway. The first digital currency issud by a central bank For 6 years, the Chinese government has been working on the creation of a virtual currency which will be issued only by the central bank and which aims to replace cash in Yuan (the local currency in China).

The Coronavirus amplifying the transition to virtual currency

It is the first digital currency issu Pakistan Phone Number List by a Central Bank in the world and it will also be the most us: today Alipay and WeChat Pay, the leaders of Chinese electronic wallets have 1.7 billion users between them and 1 billion digital payment transactions per day on WeChat Pay in 2018(1). These infrastructures will be us to distribute the DCEP and which will undoubtedly facilitate its adoption and use. The digital Yuan is bas on a two-tier monetary system: – A CBDC (Central Bank Digital Currency) issu by the Chinese central bank to commercial banks. – A CBDC issu by a commercial bank to the general public. During the test phase, the country’s state-own banks, namely “Bank of China”, “Industrial and Commercial Bank of China”, “China Construction Bank”, and “Agricultural Bank of China” will issue the DCEP to employees.

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A competitor for Alipay and WeChat Pay

What are the reasons that accelerated the development of e-Yuan? First of all, the e-Yuan offers a solution to the high costs DT Leads of issuing, distributing, storing and circulating the classic Yuan. The latter has all the disadvantages associat with the transport and use of cash. In addition, traceability and the fight against fraud are major concerns for the Chinese government. Virtual currency seems to be the answer to these needs. With the DCEP, the collection of transaction data and information on the circulation of this currency is much easier to achieve. This provides an excellent reference for the development and implementation of future monetary policies. The DCEP also facilitates the fight against money laundering, tax evasion, corruption and the financing of terrorism. Bas on information releas by the People’s Bank of China (BPC).

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