Reports from China Indicate a Crypto-Yuan Will be Released in the Near Future
Bitcoin and the cryptocurrency market reported gains of roughly 30% over the past week or so. This rally has been attributed primarily to the Chinese market following praise by China's President Xi Jinping. In addition to praise, the Chinese government passed a crypto-law regarding blockchain technology.
It seems that the Chinese government is willing to take it's new stance on blockchain even further.
Introducing China's Official Cryptocurrency: "DCEP"
Reports from china seems to suggest that an official Chinese-backed cryptocurrency version of the Yuan is on it's way. Huang Qifan, vice chairman of CCIEE (China Center for International Economic Exchanges) a Beijing-based think tank has recently spoken at the Inaugural Bund Financial Summit of 2019 in Shanghai.
Huang QiFan, the vice chairman of the CCIEE (China Center for International Economic Exchanges) has announced at Inaugural Bund Financial Summit of 2019 today that:â Jessica.Z @OKEx (@jessyuer) October 28, 2019
China might roll out the world first digital currency - #DCEP
It appears that the PBOC (Peoples Bank of China) will soon launch a digital currency called DCEP. This will likely be tested and rolled out initially to commercial banks. DCEP is allegedly short for Digital Currency Electronic Payment and will likely be a stablecoin pegged to the value of the Yuan. It is expected to be released in early 2020.
Yup, that's what the "Blockchain Good" narrative is forâ Dovey ä»¥å¾·æäºº Wan ð ð¦ (@DoveyWan) October 28, 2019
From various sources the full rollout will take a while (into late 2020), a trial can be as quick as the end of 2019. Most likely in Shenzhen and Hangzhou
Read https://t.co/RIYHvzxR6C to know what this DCEP thing is https://t.co/7uzm9nE41K
DCEP & Bitcoin
The cryptocurrency markets respond strongly to media hype, and it might push Bitcoin much higher in the short term. We will possibly see Bitcoin break the upper resistance levels and we might see Bitcoin stabilize somewhere between $12,000 to $14,000.
Chinese-based cryptocurrencies, such as TRON and NEO might see even higher gains than Bitcoin and other projects. In addition to the Chinese DCEP, New York-based company Bakkt is expected to release a Bitcoin Options market which could further increase volatility.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado