China’s DCEP Cryptocurrency: Digital Currency Electronic Payment?
For some time now, a digital-only currency has been expected to come from China. The coin has already been named the ‘DCEP,’ which stands for digital currency electronic payment. This is according to the governor of the People’s Bank of China, Zhou Xiaochuan. However, little else has been revealed about the coin. For instance, the governor did not clarify whether it would be based on the blockchain or whether it would be just a digital token.
What Experts Think About China's DCEP Cryptocurrency
According to Bloomberg, the speech by Zhou was a mere swansong as he is expected to retire soon and name a replacement. China’s National People’s Congress will elect a new governor on March 19. He made the statement after a flurry of questions on where the Chinese economy was headed followed by the country’s regulation of ICOs. He was also asked about the bank’s intentions to launch a digital currency, which was when he talked about DCEP.
He said that the bank was indeed working on a digital coin, which would be named the DCEP and said little else. According to some reports, it could be based on the blockchain, the distributed ledger, or another technology that already exists. According to the governor, their study on digital currency is not to find a new solution for money, but it can be used to ease payments. It is worth noting the People’s Bank of China has been conducting research on a blockchain crypto coin since 2014. A while back, it even announced that it was conducting trials for such an idea.
It has been noted that the PBOC has been doing research for quite a while. Once progress has been made, a pilot program is going to be launched. For now, DCEP might just be a working title. For instance, when the euro was being tested, it was first called the European Currency Unit.
What The Crypto World Thinks About China's DCEP Cryptocurrency
Reactions from Chinese social media were mixed. Some praised the move while others said there was no surprise at this move. It was also worth noting that the governor did not indicate that there was a change in the direction of the nation on crypto. Mr. Zhou did say that there was no specific regulatory policy for or against crypto. However, he did mention the fears of stability that the Chinese Central bank had.
About Zhou’s Career
Mr. Zhou, who is seventy, has been at the helm of the PBOC for the last 15 years. Many regard him as a reformer, who wishes to see the economy excel. In his time at the top, the Chinese economy has moved from the sixth largest globally, to become the second biggest. However, reports indicate that leaders are more interested in stable and steady growth for the future. They also have similar desires for the country’s currency, the Yuan.
There have always been prospects of a national crypto coin in the media. However, the crypto community has not received it with much enthusiasm. This is because the aim of decentralization is to eliminate government control of currency.