Digital RMB DCEP Whitepaper — English summary

The Chinese government released a whitepaper describing its ambition in the digital Renminbi. The paper, titled the progress of the development of a digital RMB, is 20-pages long and is one of the most influential paper of the 21st century on the future of government controlled money.

Introduction

It starts off by detailing the fast-growing digital economy with a greater public demand for security, convenience and privacy for retail payments.

Central banks around the world have followed the development of financial technology and actively exploring a new form of digital legal tender, which the People’s Bank of China (PBoC) has placed great importance on the development of a legal digital currency.

In 2014, a research group was established to conduct research on this issuance framework, key technologies and in 2016, the first generation digital RMB or eCNY, was trialed for international usage.

As of today, the trial is completed and the system has been developed to safe and controllable standards and has been put into pilot tests in several regions. The government takes into account the views of the public when developing the digital RMB system and will strengthen communication with all parties.

R&D background

The development of the digital economy demands a new, safe and inclusive payment system

China is moving from a stage of high speed growth to high quality development with the digital economy spearheading development momentum.

The rise of digital technologies such as big data, cloud computing, artificial intelligence, blockchain and Internet of Things, there has been an emergence of new business models in the digital economy.

Since the outbreak of the pandemic, digital work and new ways of life and work such…