3/11/2021 China’s DCEP digital yuan wraps up another mass test – dogsandstocks

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22,089 views | Wednesday, March 10, 2021 Contact Us Blog

New Chinese Cryptocurrency is Beating

Facebook's Libra Coin to the Punch With the
China’s
Next DCEP digital yuan
Biggest Cryptocurrency wraps up
another mass test
Shen Haixiong Journalist
Forbes Financial News | Paid Program
Innovation
by Concepcion Matheney February 28, 2021

With the Chinese Construction Bank expanding its operations in the

cryptocurrency sector, it’s clear China is aiming to beat United States-
based companies to the punch with the next big currency. They have
Facebook's Libra coin clearly in their sights, and with over $50 billion
of trade happening and that number only growing, it’s clear the Chinese
government wants a piece of the crypto pie.

China concluded another mass retail test of its new digital yuan this week a er distribu ng 100,000 e-CNY “red
packets”. MARCH 10, 2021
The latest test in the tech metropolis of Shenzhen means China — aside from earlier trials involving large banks — has
China
nowhas officially
tested adopted
out its new a cryptocurrency
digital yuan on 250,000 shoppers asand
a government-backed
restaurant-goers in two megaci es. Last month, China
currency;
staged ait’s now
similar backed
giveaway by local
in Suzhou, banks,
following givingtest
a smaller the currency stability
in Shenzhen.
and security, unlike the more volatile currencies in operation today.
The new digital yuan — now officially known as e-CNY, or digital CNY — is the fruit of China’s ambi ous DCEP (Digital
China's prime minister announced just today that unofficial
Currency, Electronic Payment) project, a Chinese central bank digital currency (CBDC) that many countries, especially
cryptocurrencies still remain illegal in China and only official coins can
b b h h h h b
https://dogsandstocks.myshopify.com/blogs/news/china-s-dcep-digital-yuan-wraps-up-another-mass-test 1/3
3/11/2021 China’s DCEP digital yuan wraps up another mass test – dogsandstocks

China’s rivals, are watching with foreboding and fear. As a result of China’s progress toward a sovereign digital currency,
many countries are now in a race to develop their own CBDC as well.

22,089 views | Wednesday, March 10, 2021

In development for over six years by the People’s Bank of China, the DCEP project is crea ng a new digital form of
China’s money supply. Analysts expect the e-CNY digital currency, once it is officially launched, will greatly expand the
New Chinese Cryptocurrency is Beating
RMB’s influence in regional trade as well as eventually, around the world.
Facebook's Libra Coin to the Punch With the
But for now, China is trying to win wide acceptance of the new digital yuan — and work out the bugs — on its own
Next Biggest Cryptocurrency
home soil.

Shen Haixiong Journalist

L.Wu, oneForbes
of 100,000 e-CNY loNews
Financial ery winners in Shenzhen, went to the Fu an District Walmart this past weekend to
| Paid Program
spend herInnovation
200 digital yuan award on the last day of this trial. “It is convenient,” Wu told, a er she bought some
groceries with the new digital yuan. But she thought the e-CNY wallet needed more fine-tuning. She said she found the
app did not top up — transfer funds automa cally from a registered credit card — as other third-party payment apps
With the Chinese Construction Bank expanding its operations in the
she was accustomed to using would do.“If the balance in the e-CNY wallet is not enough, the transac on will fail
cryptocurrency sector, it’s clear China is aiming to beat United States-
directly,” Wu said.
based companies to the punch with the next big currency. They have
Facebook's Libra
Wu, the e-CNY coin
user, clearly
signed up for in
thetheir
recentsights,
Shenzhenand with
lo ery overYear’s
on New $50Day.
billion
A week later, she received a message
of trade
from happening and that
the local government number
informing only
her that she growing,
had won. Sheit’s
wasclear the Chinese
instructed to download the e-CNY wallet app,
government wants
which has not been aofficially
piecelaunched
of the crypto pie.yet. To register for the lo ery, Wu said she was required to provide
to the public
her personal details, including name, iden fica on number and phone number.

Wu said she is not worried about use of her personal data when it comes to collec ng or using the new e-RMB. She
thinks the e-CNY wallet is similar to but probably more private and secure than China’s ubiquitous WeChat pay or
Alipay.

But as to whether the DCEP project would be successful with mainland users in the real world, a er the e-CNY is
launched, Wu said she wasn’t sure. On the one hand, Wu said she would be willing to keep using digital yuan for
payments. “It feels like real cash but kept in an electronic device.”

On the other hand, she didn’t see the strength of the e-CNY wallet compared to WeChat Pay or Alipay. “If it does not
have any excep onal advantage superior to them, why would I download another app for pure payment?” she said. “It
is just troublesome and redundant.”

MARCH 10, 2021

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China has officially adopted a cryptocurrency as a government-backed

currency; it’s now backed by local banks, giving the currency stability
and security, unlike the more volatile currencies in operation today.

China's prime minister announced just today that TO

BACK unofficial
NEWS
cryptocurrencies still remain illegal in China and only official coins can
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3/11/2021 China’s DCEP digital yuan wraps up another mass test – dogsandstocks

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Forbes Financial News | Paid Program
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With the Chinese Construction Bank expanding its operations in the
cryptocurrency sector, it’s clear China is aiming to beat United States-
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based companies to the punch with the next big currency. They have
Facebook's Libra coin clearly in their sights, and with over $50 billion
of trade happening and that number only growing, it’s clear the Chinese
government wants a piece of the crypto pie.

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MARCH 10, 2021

China has officially adopted a cryptocurrency as a government-backed

currency; it’s now backed by local banks, giving the currency stability
and security, unlike the more volatile currencies in operation today.

China's prime minister announced just today that unofficial

cryptocurrencies still remain illegal in China and only official coins can
b b h h h h b
https://dogsandstocks.myshopify.com/blogs/news/china-s-dcep-digital-yuan-wraps-up-another-mass-test 3/3