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What is DCEP?
DCEP (Digital Currency/Electronic Payment) – also known as the ”digital yuan” – is China's central bank digital currency, which is pegged 1:1 to China's yuan. The DCEP is being driven by the China's desire to protect its monetary sovereignty from private-sector players, cryptocurrencies, and a US dollar-dominated global payments and financial system. The DCEP, while partly blockchain-based, is fully centralized with the ledger held by the government. Like the yuan, the DCEP is issued by the People’s Bank of China (PBOC) to existing traditional banks, which in turn distributes the DCEP to customers’ digital wallets connected with bank accounts.