According to a report published by CNBC, the increased interest in the digital yuan may be partially related to the increase in the Bitcoin price. At least that is the opinion of the Bank of China (PBOC).
China’s digital currency, which is currently in the testing phase, is known by different names: China Coin, DCEP (digital currency electronic payments), digital yuan (RMB), China CBDC (central bank digital currency). The People’s Bank of China (PBOC) has been actively testing its digital currency since last year and allows users to pay with digital currency when purchasing products at businesses in certain cities in China. According to Wang Xin, head of the PBOC research bureau, interest in DCEP is strong, and many interested parties are closely watching how the situation evolves.
Other countries are also working on their own CBDCs: Fed Reserve, ECB, Japan, Switzerland and others. ECB chief Christine Lagarde recently stated that it could take four years or a little longer 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.
However, Xin believes that BTC, which is gaining value, could further increase interest in China’s CBDC. Currently, Bitcoin is trading at $ 60,000 levels.
Digital RMB has been tried several times so far. However, the government has not yet announced a specific date for the official release for DCEP.