China's central bank has announced plans to launch a digital version of the yuan by the end of 2026, according to a statement from the People's Bank of China. The move is seen as part of a broader effort by China to reduce its dependence on the US dollar and promote the use of the yuan in international transactions.
Digital Yuan
The digital yuan, which is also known as the Digital Currency Electronic Payment (DCEP), is a digital version of the yuan that can be used for payments and transactions. The launch of the digital yuan is seen as a significant step towards the internationalization of the yuan, which is currently used in less than 5% of global transactions.
China's economy accounts for over 20% of global GDP.
The launch of the digital yuan will help to promote the use of the yuan in international transactions and reduce our dependence on the US dollar, said a spokesperson for the People's Bank of China.