China is looking to ramp up spending of its digital yuan currency, referred to as the “cross-border Digital Currency Electronic Payment” (DCEP). The digital yuan was developed by the People’s Bank of China as a way of eliminating the need for physical cash when conducting digital transactions. It is intended to allow Chinese citizens to make payments and transactions directly with one another. The digital yuan is not a cryptocurrency, and does not use blockchain technology. Instead, it relies on a centralized system overseen by the central bank. According to reports, China is now looking to increase the use of DCEP by allowing for cross-border payments. This could potentially revolutionize the way money is transferred from one person to another globally. The plans to increase the global use of the digital yuan are part of China’s larger “Digital Silk Road” initiative. This initiative is aimed at increasing global connectivity and interconnectivity, while incorporating China’s cutting-edge digital technologies into international trade and finance.
