China has finally announced its grand plans for the cryptocurrency market. According to a tweet by the Block Journal, the Red Dragon has announced plans to launch its own digital currency called DCEP (presumably short for Digital Currency Electronic Payment). According to the information available, the Chinese Central Bank will launch be the agency to launch DCEP. In addition, the digital currency will be tested and onboarded with commercial banks.
Rumours about China’s digital currency has been doing the rounds ever since it passed a new cryptography law which will come into effect January 1, 2020 onwards. According to reports, the law is aimed at “facilitating the development of the cryptography business and ensuring the security of cyberspace and information.” The law states that the state encourages and supports the research and application of science and technology in cryptography and ensures confidentiality.
China has been making an aggressive push in the blockchain space as Chinese President Xi Jinping recently called on the country to seize opportunities in the space. The country’s stance has been to promote regulated currencies and keep unregulated, decentralised cryptocurrencies under the backburner.
This move will definitely shake up the cryptocurrency world as this is a huge endorsement of the technology. Will this spark a crypto arms race?