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Digital Yuan
What is digital yuan?
The digital yuan – also known as Digital Currency/Electronic Payment (DCEP) – is China's central bank digital currency, which is pegged 1:1 to China's yuan. The digital yuan 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 digital yuan, while partly blockchain-based, is fully centralized with the ledger held by the government. Like the yuan, the digital yuan is issued by the People’s Bank of China (PBOC) to existing traditional banks, which in turn distributes the digital yuan to customers’ digital wallets connected with bank accounts.