China launching digital currency in 2020?

14 May 2020

China cryptocurrencyFinancial traditionalists who erroneously claim that the future of money is not digital, might like to consider the news that China – the world’s second largest economy – is likely to launch its own digital currency this year.

The country’s digital currency, the Digital Currency Electronic Payment (DCEP), will be able to facilitate most banking activities including payments, deposits and withdrawals from a digital wallet.

“Once launched, consumers would download an electronic wallet application authorised by the People’s Bank of China (PBOC), which they would then link to a bank card to start to pay with or receive digital yuan using a mobile phone with merchants or make transfers with an ATM machine and other users,” reports the South China Morning Post.

Last month, The People’s Bank of China (PBoC) said it intends to begin regional tests for the national digital currency (DECP) in Shenzhen, Suzhou, Xiong’An and Chengdu. 

However, the central banks stressed that, for the moment, it’s just a trial.
“The rumoured information about the DECP on the internet is part of the test in our research and development process and it does not mean the digital yuan has been launched officially,” an unnamed official from the China Digital Currency Institute said in the statement.

High profile cryptocurrency advocate, deVere Group CEO Nigel Green has previously noted: “Traditionalists who somehow still believe that cryptocurrencies are ‘just a fad’ could be compared to King Canute who is said to have attempted to command the tides of the sea to go back. It’s becoming increasingly clear that digital currencies are the future of money.”