In an effort to internationalise the Chinese yuan, the government-run People’s Bank of China (PBoC) has begun rolling out it’s very own digital currency known as ‘DCEP’. This move comes in part due to the reliance of the dollar in international finance, and the PBoCs desire to break this standard and create a new ‘battlefield of competition’ between major countries.

In a recent article, the PBoC stated “China has many advantages and opportunities in issuing fiat digital currencies, so it should accelerate the pace to seize the first track(…)”

The currency has been in continuous development for the past 6 years and is now being trialled across a few select regions and banks within the country, with the eventual goal being nationwide rollout.

The PBoC claims that DCEP will reduce the cost of circulating physical money, as well as greatly improve monetary policy transmission, in turn allowing for greater recovery, post-COVID.

These claims aside, one thing is clear — one of the largest economies in the world-embracing such technology heralds a new and exciting future for digital currencies.