China’s government is pushing ahead with a digital currency which could give the government more control over the flow of money. While sharing some features with cryptocurrencies, China’s token would be centralized, giving regulators greater visibility in what’s happening with its money.
China’s central bank has led global peers in development of digital legal tender, with research efforts started in at least 2014. The digital currency is intended to eventually replace coins and banknotes, and could offer an alternative to the dollar-based international payments systems. “DCEP will become a key infrastructure of digital economy,” Didi said in a Chinese statement. It will work with the government to “boost the integration of the digital economy with the real economy.”