According to the People’s Bank of China, the nation’s central bank, the development of a digital yuan (DECP) is making progress.
The central bank, which assembled a special task force to conduct research on digital currencies in 2014, accelerated its digital yuan work after Facebook unveiled its digital currency project Libra in June 2019.
The bank said the ‘processes of top-level design, setting industry standards, developing potential functions and integration testing’, were ‘almost complete’, according to CoinDesk. China’s Central Bank has been working on the expected two-tiered system that would offer ‘controllable’ anonymity and the functionality to replace paper cash.
DCEP can process transactions offline on mobile phones. One of the goals for the digital yuan is to promote the internationalisation of the renminbi since it can be used in cross-border payments without going through banking intermediaries that charge a fee and take more time to process these transactions.
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