DCEP online launch still pending! People's Bank of China Governor: Digital Currency Electronic Payment (DCEP) pilot is just routine operation, the schedule for its release is still undecided.

In mid-February, screenshots of the Agricultural Bank of China's app testing the Digital Currency Electronic Payment (DCEP) caused a stir in various sectors. The app includes features such as digital asset exchange, management, transaction records inquiry, and wallet integration, hinting at an imminent official launch. However, the governor of the country's central bank recently revealed during the "Two Sessions" that the pilot program does not mean the application will be rolled out, and there is currently no definite schedule for its launch.

Closed Pilot Testing Still Part of the R&D Process

The term "Two Sessions" refers to the "National People's Congress" and the "Chinese People's Political Consultative Conference National Committee Meeting." In the past, the sessions were usually held in March every year, but due to the impact of the COVID-19 pandemic, this year's Two Sessions were postponed to the 21st and 22nd. During the Two Sessions, Yi Gang, the Governor of the People's Bank of China, stated in an interview with "China Finance":

Currently, the digital economy is becoming an increasingly dominant force in global economic growth. The development and application of legal digital currency are beneficial for efficiently meeting the public's demand for fiat currency under digital economy conditions, improving the convenience, security, and anti-counterfeiting level of retail payments, and promoting the rapid development of China's digital economy.

It was previously reported that the People's Bank of China established a special working group as early as 2014 and set up a digital currency research institute. Special research was conducted on issues such as the issuance framework of digital currency, key technologies, issuance circulation environment, and relevant international experiences. Yi Gang pointed out:

Currently, the research and development of the digital RMB follow the principles of steady progress, safety, controllability, innovation, and practicality. Internal closed pilot testing is being conducted in Shenzhen, Suzhou, Xiong'an, Chengdu, and future Winter Olympics scenarios to verify the theoretical reliability, scenario applicability, and risk controllability. However, the current pilot testing is still part of the R&D process and does not mean that the digital RMB will be officially launched. There is no timetable for its formal introduction.

In addition to the latest developments in DCEP, Tan Jieqing, a National People's Congress delegate and director of the Institute of Applied Mathematics at Hefei University of Technology, also proposed at the Two Sessions to vigorously develop the blockchain industry to promote the modernization of the governance system.

Establishment of Special Fund for Blockchain Industry Development

Furthermore, Tan Jieqing stated that the Chinese government should establish a government-led special fund for the development of the blockchain industry to support the development of excellent blockchain enterprises, encourage blockchain technological innovation, and cultivate potential unicorn enterprises in the blockchain industry. He suggested:

During the window period of formulating the "14th Five-Year Plan," a national blockchain industry development plan should be clearly issued to help China seize the commanding heights and discourse power of future global blockchain technology and industry development.

It is reported that the "14th Five-Year Plan" refers to China's fourteenth five-year plan. Since the first five-year plan was formulated in 1953, China has issued thirteen five-year plans, mainly focusing on major national development issues.

Since October last year, Xi Jinping publicly stated that "blockchain should be regarded as an important breakthrough in core technology independent innovation and as one of the important cores for the future direction of national development." Since then, China has rapidly embraced blockchain as mainstream. In April, it even jointly established a Blockchain Committee with Tencent, Baidu, and the central bank, showing China's efforts to become a leader in the blockchain field.