Chinese commercial banks and other institutions will compete to provide the best services using China’s digital currency when the new form of money will be launched.
China is preparing to be the first country to roll out a digitised domestic currency, according to Reuters. The Digital Currency Electronic Payment (DCEP) project is being closely watched by the world’s financial services industries, though few details are currently available. The currency will be powered partially by blockchain technology, like Facebook’s proposed Libra digital currency and Bitcoin.
The People’s Bank of China will adopt a two-tier approach with its project; first it will issue the currency to commercial banks and other institutions, who will then resend it to the general public. The financial institutions will compete during this period to provide the best tech and offer and the front runner will take the whole market.
The main motivation behind the project, is China’s desire to protect its capital borders in the face of fears that newer global payment systems and advanced technology could facilitate illegal cash flows.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now
We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the The Paypers website, they in no way represent the opinion of The Paypers.