Part 6/8:
China's digital yuan (DCEP) is issued by the People's Bank of China and is pegged one-to-one with the physical yuan. Despite the technological advances, usage remains relatively low, which has prompted authorities to introduce features like expiration dates to boost adoption.
A former Chinese central banker highlighted that the low usage levels underscore the need for incentives—such as expiration dates—to encourage citizens to utilize the digital currency actively. This strategic move reflects a broader objective to ensure that the digital currency becomes a viable alternative to cash and traditional banking channels, even if initial acceptance is limited.