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With the rise of cryptocurrencies like Bitcoin, central governments have become increasingly interested in the idea of digital currencies. Arguably no major economy has made greater strides toward currency digitalization than China. China began developing a digital currency in 2014 under a government programme dubbed the Digital Currency Electronic Payment (DCEP), otherwise known as the digital yuan. However, unlike Bitcoin which relies on decentralized Blockchain technology, the digital yuan will be centrally controlled by China's monetary authority.
The digital yuan promises to revolutionize how money is spent, transferred, and distributed in China and beyond. Among other things a centralized digital currency will facilitate transactions, open the door to new kinds of monetary policy, limit crime, and perhaps even allow its users to circumvent the US dollar in global transactions.
After several recent digital currency trials in Shenzhen, Suzhou, and Chengdu there is much anticipation that China may be nearing a more expansive rollout of its digital currency. What will this rollout look like? How will the digital yuan shape the Chinese economy in the coming years? Can we expect the digital yuan to facilitate the internationalization of the RMB as a rival to the US dollar?
Join us for an exploration of these questions and more.