Shortly after Facebook Libra was announced, reports started emerging out of China that the nation would soon launch its own digital currency. Some of the sources of this chatter were highly placed officials working at the nation’s central bank. When reports first emerged, the nation kept silent and even described most of the reporting as inaccurate.
China’s DCEP is Not Ready for Launch
In recent weeks, there have been reports that China could launch its digital currency in the next two months. This recently forced the Chinese central bank to issue a statement denying those rumors. In the statement, the PBoC said that claims it had launched its digital currency were false. The statement added that the bank had not authorized any online platform to trade in the alleged digital currency. However, it did note that the bank had been studying a digital currency since 2014.
This statement was probably issued due to recent reports in western media outlets that the DCEP would launch in about two months. One of the mainstream news outlets to report on the issue was CNBC. It reports that Jack Lee, a financial expert, believes the PBoC was ready for launch and its digital currency could launch as soon as the next two months.
Forbes also carried a similar report, which indicated that China’s CBDC technology had been ready since 2018. The Forbes report had indicated that China could launch its CBDC as soon as November 11 this year. However, it would appear that the report was unfounded since November came and went without China launching its digital currency.
A Major Focus on Blockchain Tech
While China may not be ready to launch its digital currency, there is no doubt that the nation has been seriously working on blockchain technology. About two days after the nation’s president declared that the blockchain would form a core part of China’s innovativeness, the nation passed its first comprehensive cryptography law.
The nation already has a blockchain project in place. This project is called the Original Intentions Onchain. It allows members of the Communist Party to store the pledge of allegiance on the blockchain permanently.