While key central bank figures in the West like Jerome Powell and Christine Lagarde appear to be procrastinating on the subject of central bank digital currencies, China continues to make significant progress.
China’s digital currency electronic payment project, or DCEP, helmed by the country’s central bank, continues to draw significant private sector participation. From tech giants, to e-commerce conglomerates, many of the major private sector firms are playing pivotal roles in the quest to create the digital yuan.
DCEP testing also continues to expand, with trial runs via lotteries taking place across several cities. Banks like the Agricultural Bank and the Industrial Commercial Bank have taken a leading role in these DCEP pilot protocols, creating user wallets for consumers.
Tencent and Ant Group are major digital yuan players
Amid the many DCEP pilots across China, the absence of Ant Group and Tencent, operators of the country’s two largest electronic payment platforms — AliPay and WeChat Pay — caused significant speculation. Indeed, the digital