- China’s central bank after introducing pilot tests of its Bitcoin-like digital currency now plans to mount towards its further development.
- On one side China is continuing to step forward to fulfill its vision regarding the digital currency. Whereas on the other side, it appears like Facebook’s cryptocurrency Libra is not favored in its ambitions.
- Digital Currency Research Institute under the People’s Bank of China (PBC) stated DCEP is on the tracks of development.
China’s central bank had introduced a pilot program of its Bitcoin-like digital currency DCEP across four cities last month. Following this, the bank has now got plans to mount towards the electronic cash payment system. Also, through the pilot program, China took its first step on the route of its first electronic cash by a central bank.
Facebook’s cryptocurrency Libra on a serious setback
On one side China is continuing to step forward to fulfill its vision. Whereas on the other side, it appears like Facebook’s cryptocurrency Libra is not favored in its ambitions. It is worth emphasizing the fact that Facebook, a US-based social media giant also had the plans for launching Libra this very year.
The politicians and regulators in the U.S are not very pleased with the currency and have raised their concerns. And this has set a serious setback for the Facebook-backed Libra’s development and launch.
China’s digital currency on the tracks of development
Digital Currency Research Institute under the People’s Bank of China (PBoC) has stated that DCEP is on the tracks of development. This is in accordance with a report from PTI.
At present, China is just conducting its internal pilot tests for the cryptocurrency in four cities. However, the official launch of the cryptocurrency seems like it is not anywhere around the corner. Highlighting the main reason China carried out the internal tests was to improve the functionality of its first electronic cash.
According to reports from Global Times, DCEP before spreading to a wider scope will undergo further enhancements in its technology. And even before it can spread to a wider range, only a few specific banks and end-users will conduct its trials.
And according to Chen Bo, the banks and the telecom companies are the two types of players to exist in future trials. Chen Bo is the Finance Research Centre Director at the Institute of Finance and Economics. He has also reportedly stated the possibility of the combination of DCEP with 5G and sim cards in the near future.