The People's Bank of China has long been developing a digital currency called DC / EP (Digital Currency / Electronic Payment). For the yuan or renbi, a fiat currency based on its economy since 1949, it would propose an official and legal alternative.

This coin is based on a block chain created for this purpose and will have a 1: 1 parity with the yuan. The goal: to become a global currency that competes with the dollar. What could be better than doing it via mobile?

The application of mobile payments that will allow operations with DC / EP is already being tested with the participation of the four national banks of the Asian giant and the People’s Bank of China. Not only that, the financial electronic payment giant Ant and the well-known operator Tencent are also included in this expansion.

Several organizations recommended promoting mobile and digital payment systems in early February, rather than cash. It is therefore believed that confinement may be one of the reasons for accelerating the development and deployment of DC / EP.

Huang Qifan, president of China’s Center for International Economic Exchange, said the organization had been developing DC / EP for six years, and was fully confident in its ability to enter China’s financial system. In his view, alternatives like SWIFT have become obsolete due to their cost and slowness.

So it is one of the most important economic movements in recent years: if confirmed, China would have a special tool, making it the first country with an effective digital currency. This currency could also be used around the world, and could compromise other currencies that are widely used outside of its economies (the dollar or the euro).

Information source: xataka.com