The country’s central bank believes that Bitcoin’s current rise could bring additional interest to the Chinese crypto DCEP.
According to an article by CNBC, the increase in the price of Bitcoin may in part cause increased interest in the digital Yuan, although banks in other countries are considering launching their own CBDCs.
“Interest in China DCEP is very strong, everyone is very interested”
The Chinese cryptocurrency currently being tested has different names: China Coin, DCEP (digital currency electronic payments), digital yuan (RMB) and China CBDC (central bank digital currency).
The People’s Bank of China (PBOC) has been actively experimenting since last year and allows users to use it as payment when purchasing from merchants in certain Chinese cities.
According to Wang Xin, head of the PBOC research bureau, interest in DCEP is strong, and many interested parties are paying close attention to how the situation evolves.
The difference between DCEP and Bitcoin
Other countries are also working on their own CBDCs. ECB chief Christine Lagarde recently stated that it could take four years or more for the digital Euro to be created and released.
China has been working on DCEP since 2014. The digital yuan is expected to partially replace the money in circulation.
Many in the crypto community expect Bitcoin to do the same, but Bitcoin is decentralized and cannot be controlled by the government.
Xin believes, however, that rising BTC in price could spark more interest in Chinese CBDC.
Currently, Bitcoin rose to the $ 60,000 level after dropping to $ 43,000 on March 1.
Digital RMB has been tried several times so far. However, the government has not yet announced a specific date for the DCEP to be officially launched.