11 things you may not know about China’s digital currency
- China was the first major economy to begin exploring its own digital currency in 2014, though it is yet to launch the proposed digital yuan
- Unlike cryptocurrencies such as bitcoin, which are not centrally controlled, China’s “sovereign” digital coin would fall under the authority of the People’s Bank of China
1. What is China’s sovereign digital currency?
The so-called Digital Currency Electronic Payment (DCEP), has yet to launched in 2020. Learn more
2. Which central bank will launch world’s first digital currency?
China has made rapid progress while other nations are also at various stages of research and development. Learn more
3. Are there data and privacy protection concerns?
China’s central bank is trying to allay privacy worries by promising “controllable anonymity”. Learn more
4. What does China’s SWIFT joint venture mean for its digital currency?
Finance Gateway Information Service was registered in Beijing in February with €10 million (US$12 million) as incorporation capital. Learn more
5. Is China’s digital currency set for launch?
People’s Bank of China governor Yi Gang said “there’s no timetable for an official launch” of China's sovereign digital currency. Learn more
6. Is China’s digital currency a threat to global monetary systems?
Beijing is not seeking to replace existing currencies with its digital yuan, according to former People’s Bank of China governor Zhou Xiaochuan. Learn more
7. What did large-scale test by four state-owned banks mean for China's digital currency?
China’s big four state-owned commercial banks started large-scale internal testing in August. Learn more
8. Have some business owners been reluctant to participate in pilot programmes?
Some businesses in Suzhou were reluctant, but were told, “a merchant but cannot decline payment in e-yuan”. Learn more
9. How much did Shenzhen consumers spend during the largest trial of digital yuan?
Over 47,000 consumers spent 8.8 million yuan (US$1.3 million) during a week-long trial of China’s sovereign digital currency. Learn more
10. Which US food outlets were included in the digital currency tests?
China included McDonald’s, Starbucks, Subway on list of foreign firms to test digital currency. Learn more
11. How much of China’s digital currency was distributed during the second trial in Shenzhen?
A total of 100,000 digital “red packets”, each containing 200 yuan (US$31), were distributed to residents. Learn more