In part 2 of his article on China’s digital currency ambitions, James Pang takes a look at how a Chinese central bank-issued digital currency — the DCEP — can complement existing e-payment methods and have an edge over traditional cash and cryptocurrencies when it is fully rolled out. Being the first major economy to launch a CBDC, China’s experience will be useful for other countries looking to hop onto the digital currency bandwagon. Utilisation of Chinese DCEP could also aid the process of internationalising the Chinese Yuan (RMB).

What’s the difference between virtual currency, digital currency, cryptocurrency, and e-money? In part 1 of his article on China’s digital currency ambitions, James Pang traces the development phases of China’s central bank digital currency DCEP amid a growing global appetite for central bank digital currencies. He also guides us through the jargon of the digital currency world.

In the development of 1G to 4G technology, the US, Europe and Japan took turns to dominate. When it comes to 5G, China says that it has built the largest 5G network globally with other 718,000 5G base stations throughout the country, which is at least ten times the network in the US. China is also strong in 5G chip design and is making inroads in setting global standards for wireless networks. Is China getting a leg up in the tech race?