China is delaying the introduction of the national digital currency due to the spread of coronavirus. At the same time, the probability that the launch of the digital yuan will be carried out as planned remains quite high.
The people’s Bank of China has all the necessary technological base, resources and personnel to fully launch the digital currency-based electronic payment system (DCEP). Pilot testing of DCEP is planned this year. The Central Bank is also considering an option in which the digital currency will completely replace cash.
“Due to the active spread of coronavirus, the work of government agencies, including the people’s Bank of China, has significantly slowed down. Lawmakers and researchers who work on DCEP are also experiencing problems in this regard, which affects the development process, ” an anonymous source said.
Shentu Qingchun, CEO of Shenzhen-based blockchain company BankLedger, which is also involved in the project, said that the Central Bank of China intended to make an important announcement this quarter. However, there is only a month left and the probability that the announcement will be made on time is extremely small.
At the same time, some sources familiar with the situation suggest that the release of DCEP will still take place this year. Cao Yin, Deputy Director Of the Institute for blockchain research at Tsinghua University, noted:
“The Central Bank of the country has been preparing the base for launch for a long time. At the moment, the technical roadmap has already been developed, and the Central Bank’s digital currency research team has a sufficient number of people who can solve the issue of a small delay.”
Recall that last week, the former President of the People’s Bank of China Lihui Li (Lihui Li) suggested that the coronavirus can speed up the launch of the national digital currency.