The Digital Currency Electronic Payment (DCEP) is now being tested in several Chinese cities, including Shenzhen, Suzhou, Chengdu, and Xiongan. The tests are aimed at considering all possible scenarios for using the digital yuan and the risks associated with financial operations.
The Wall Street Journal (WSJ) has reported about an expiration date function related to the digital yuan, something that aims to help the People’s Bank of China stimulate consumption during economic downturns.
“The [e-] money itself is programmable. Beijing has tested expiration dates to encourage users to spend it quickly, for times when the economy needs a jump start”, the news outlet claimed. The Chinese government has not commented on the issue yet.
This followed reports that officials from a host of US agencies, such as the State Department, the Treasury, the Pentagon and the National Security Council, are closely studying the rollout of the e-yuan, also known as the Digital Currency Electronic Payment (DCEP).
The US news outlet Bloomberg cited unnamed sources as saying that the agencies were “bolstering their efforts to understand the potential implications” of the e-yuan’s arrival.