China Will Launch Its Virtual Currency (DCEP) In Six To Twelve Months: Blockchain VC Partner
Edith Yeung of Proof of Capital shared in a CNBC segment her position on China’s plans to launch a digital current electronic payment framework (DCEP) to be backed by Renminbi (RMB). Here is a summary of the discussion.
Yeung shared during the segment that research has been ongoing for the last five years to determine how the digital currency can be rolled out. She shared that China has identified seven different entities, including the Bank of China, Communication Bank, and also Union Pay, AliPay, and WeChat Pay. This permits a roll-out on the commercial side, and then to everyday citizens.
When asked how soon it could become a reality, Yeung stated that it could be quite soon and that it has been in the works for the past few years. She predicts that it could be rollout out in the next 6 to 12 months.
When asked whether the yuan poses a threat to the United States dollar, Yeung stated that the Chinese government is being smart about driving the adoption for RNB, and that it is working to launch a virtual RNB, called DCEP. She also added that the United States needs to hurry up to have a strong thinking and policy, or at least a direction, for a virtual USD.
She was then asked what is at stake if they the United States does not have a virtual currency. She stated that worldwide for now, developed and developing countries will dominate USD as the prime currency. And, when RNB is adopted by businesses, it is possible that transactions will mainly take place in RNB and that it will dominate the United States.
Finally, the issue of blockchain in China arose. Yeung stated that China is built by engineers, while the United States is built by lawyers. The consideration in China is how to grow more talent, and that the country is already seeing many cities and government provinces wanting to invest in blockchain technology. Companies such as AliBaba are also thinking of how they can adopt blockchain technology.