How Will DC/EP Impact China’s Financial Landscape?
The Ministry of Commerce has recently announced China’s own digital currency, the digital RMB, will be piloted in Beijing, Tianjin, the Yangtze River Delta, and some areas in China’s western region.
The People’s Bank of China (PBC), the central bank of China, is to formulate policies to govern its circulation. According to the central bank, a centralized management model and two-tier operation system will be used to manage the digital currency. The PBC will be the central bank and the upper-tier operator facilitating the exchange of the digital currency at banks and other financial institutions, which form the lower tier.
Under this operating system, to be known as the digital currency and electronic payment (DC/EP) system, commercial banks and other financial institutions must deposit with the PBC the full amounts they plan
