Crypto is a place where everything changes faster than in any other industry, and seeing as it was born in the age of the internet, this is quite fitting. Today, China is leading the global digital asset initiative. The train of innovations seems to go faster as the digital yuan (also referred to as DCEP) has fueled rapid development in the field of distributed ledger technology.
Instead of wallowing in a swamp of regulatory uncertainty, the Chinese government shifted its attention to benefits. The Chinese have not wasted time, and despite being the country where the new coronavirus started and has since made a huge impact on society and economy, tech development did not stop, but rather accelerated at astonishing rates. Reportedly, McDonald’s and Starbucks are among a group of 19 restaurants, retail shops and entertainment companies taking part in a trial of China’s digital yuan, part of a pilot program prior to a wider roll-out of the new digital currency. While the Chinese central bank digital currency seems just a few steps away from launch, the world is starving for digital cash and fintech apps.
New trends reshaping the digital landscape
The ongoing COVID-19 crisis has not only had a negative global impact, but has pushed people to seek alternative solutions to avoid using cash. Bitcoin (BTC) and Ether (ETH) are still popular, but such assets are unlikely to ever become units of account. Stablecoins and CBDCs can save the day, though. The People’s Bank of China stated that the “processes of top-level design, setting industry standards, developing potential functions and integration testing” were “almost complete.”
Moreover, the PBoC says that the digital yuan has outpaced the infamous Libra concept in terms of major technical features such as the option to process transactions offline on mobile devices. It’s also stated that one of the goals for the DCEP is to promote the internationalization of the yuan as a way to make cross-border payments…