- The Coronavirus outbreak has caused the world to shut its borders to China and many cities in the country are on full lockdown.
- The digital currency will enable the Chinese government to have control and insight into the country’s financial affairs.
According to a recent Global Times report, the launch of China’s digital currency, the DC/EP, is delayed by Coronavirus. The outbreak has caused the world to shut its borders to China and the many cities in the country are on lockdown.
An anonymous source told Global Times:
The coronavirus outbreak has led to postponed work resumption in government institutions, including the People’s Bank of China (PBC). Policymakers and research staff involved in the DC/EP project are no exception, which weighs on the development process.
The upcoming DC/EP is the digital version of the yuan – China’s national currency. Being accessible to everyone, the digital currency will enable the government to have control and insight into the country’s financial affairs. The currency is also expected to replace paper money eventually. The DC/EP aims to help China and its trading partners wean themselves off the US dollar. The Global Times noted that despite the delay, the digital currency will be launched this year.
Cao Yin, vice director of a blockchain research institute attached to Tsinghua University, told the Global Times:
The central bank has been preparing for the launch, both technologically and theoretically, for a long time. The technological roadmap has been laid out already.
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