4 Feb 2021 · Thu 11:00 AM-12:00 PM
Online on Zoom
A CBDC is a new form of Central Bank money accessible to the general public, accepted as a means of payment, legal tender, safe store of value by all citizens, businesses and government agencies. Theoretically, a CBDC should enable cheap, secure and real-time transfer of value, be accessible without a bank account and be built on an open infrastructure to foster competition and innovation.
Last April, after several years of work, the Chinese Government announced the starting of the tests of DCEP (“Digital Currency Electronic Payment”) in four major cities (Shenzhen, Suzhou, Chengdu and Xiong’an). DCEP (or Digital Yuan) is Beijing´s attempt to create its own world-leading and government-ruled digital currency.
The digital yuan is structured on a two-tier monetary system:
(1) a central bank-issued digital currency for commercial banks, and
(2) a commercial bank-issued digital currency focused on the public and it is intended to replace some of China’s monetary base, or cash in circulation.
Thus far, the tests in the Mainland have proven to be very successful. In the latest DCEP trials, Suzhou´s municipal government announced on December 4 that it would give away 100,000 digital “red packets” to residents via a lottery, each containing 200 yuan and totaling 20 million yuan.
The tests in Hong Kong have not started yet, but, last December 4, Hong Kong’s Monetary Authority (HKMA) Chief Executive Eddie Yue announced that the HKMA and the Digital Currency Institute of the People’s Bank of China (PBOC) are discussing the technical pilot testing of using the Digital Yuan for making cross-border payments, and are making the corresponding technical preparations, which means that the tests should start very soon.
In this webinar, Dr. Oriol Caudevilla will analyze what opportunities DCEP will offer to Mainland China, but also to Hong Kong and to the rest of the Greater Bay Area.
What will be discussing: