The digital yuan: China leads the way in CBDC

#5minF – 5-Minute-Friday

The principle of the “5-Minute-Friday” is probably known to many by now. This concept also fits perfectly for the popular podcast model. Every Friday Alex Bechtel, Jonas Gross and Michael Blaschke try to explain a question of the Bitcoin & Crypto community a little bit more in 5 minutes and briefly and crisply address the desired topic.

According to a recent study by the Bank for International Settlements (BIS), 86% of central banks around the world are currently considering issuing their own central bank digital currencies (CBDCs). One of the CBDC pioneers is China. For example, the People’s Bank of China (PBoC) began looking in detail at a digital yuan, or DC/EP, back in 2014 and has been testing the CBDC system since 2020. A rollout of CBDC could potentially happen as early as the 2022 Winter Olympics. In today’s 5-Minute Friday episode, Jonas Gross provides insights into the background and goals of the DC/EP, the project status, and the implications for the European Central Bank’s (ECB) digital euro.

It is true that the Bahamas is a step ahead of the PBoC China with its CBDC launched in October 2020 – however, the Chinese project is currently most comparable to the ECB’s digital euro due to China’s macroeconomic realities and country size. Jonas advocates looking to China for inspiration from the DC/EP project.

The PBoC seems to be 4-6 years ahead of the ECB here, as the system has already been implemented and is now being tested. This is another reason why we should learn from the project – even if by no means all aspects of the project are applicable to the digital euro.

The different forms of the digital euro

So if you want to learn more about the Chinese CBDC’s DC/EP project and the implications for the digital euro, listen in to today’s 5-Minute Friday episode.

Bitcoin, digital euro or cryptocurrencies: The future of money is being rewritten right now. With the Crypto Corner, we provide a point of orientation for crypto enthusiasts without falling into a hype. Alexander Bechtel from Bitcoin, Fiat & Rock’n’Roll regularly brings useful and interesting content about digital currencies and especially the digital euro.

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Nicole Nitsche
Nicole Nitsche ist studierte Theaterwissenschaftlerin und hat mehrere Jahre als Regieassistentin beim Thalia Theater Hamburg gearbeitet. Danach war Nicole Leiterin der Presse-und Marketingabteilung eines Hamburger Musiklabels. Zu ihren täglichen Aufgaben zählten dort, neben dem Verfassen von Pressetexten, die Umsetzung und... mehr
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