Many central banks around the world have begun researching and testing various versions of digital currencies, with several participating in a consortium coordinated by the Bank for International Settlement (BIS). The People’s Bank of China (PBoC) is perhaps the most advanced in preparations to launch a digital currency, having expanded pilot programs from four major cities in recent months to key economic regions in Beijing-Tianjin-Hebei, the Yangtze River Delta, and the Guangdong, Hong Kong, and Macau area. As a consequence, more information about China’s digital currency electronic payment (DCEP)—as the new unit is called—has been gradually released. The development of the DCEP has revealed the significant advantages and potential drawbacks for both China’s digital currency project and the potential for widespread central bank digital currencies around the world.
