China’s Digital Yuan: Crypto RMB Explained

China is at the forefront of global financial digitization, with its Digital Currency Electronic Payment (DCEP) system known as Crypto RMB. This government-backed digital currency, unlike decentralized cryptocurrencies like Bitcoin and Ethereum, operates within a controlled system established by the People’s Bank of China (PBOC). By pegging its value to the physical Chinese Yuan (CNY), the Crypto RMB offers stability while minimizing volatility associated with traditional crypto. 2020 marked the start of pilot programs, with current active use in cities like Shenzhen and Beijing, and plans for broader national and even international implementation.