Fresh after the announcement that the DCEP app is undergoing its final beta testing stages in Shenzhen, a representative of the People’s Bank of China told local media in the country that the first area where the platform will be officially implemented is the Greater Bay Area.
The Greater Bay Area is the regional amalgam of Hong Kong, Macao and Shenzhen, with a combined GDP of $ 2 trillion that Beijing aims to transform into a unified economic center. Its competitive legal systems, however, make it quite a challenge. The lack of standardization in customs and financial regulations has made the region a great place for blockchain and DLT technologies. In June, China Guangfa Bank launched a blockchain-based system that enables smooth cross-border payments.
Who will be the first to use DCEP?
In an interview with Southern Daily, the newspaper that serves as the Chinese Communist Party’s communication tool for Guangzhou, Bai Hexiang, president of People’s Bank of China’s Canton branch, said that financial institutions and companies will be at the top of the platform’s pilot list. which do a lot of large-scale cross-border trade
“With DCEP’s large-scale cross-border adoption in the future, Guangdong could be one of the most important markets. Guangdong has a well-developed business environment, a large population and a wide range of international trade, all of which will help accelerate DCEP adoption. ”
Ever since Beijing defined blockchain as a strategic technology, the PBoC and the China Banking Regulatory Commission have published a blockchain-based “master plan” whose main pillar is the adoption of blockchain technology to facilitate trade.
DCEP before the Olympics?
In previous announcements, PBoC said DCEP would be launched ahead of the 2022 Olympics, initially scheduled to be held in Beijing. However, the official schedule for the start of the Games has not yet been announced.
The People’s Bank of China also plans to use its Electronic Digital Currency (DCEP) system to even out competition in the Chinese digital payments market. The plan is to create a strong alternative to tech giants such as Alibaba and Tencent.