China's digital currency is every dictator's dream

RESTRICTIONS: Broadcast: NO USE JAPAN, NO USE TAIWAN Digital: NO USE JAPAN, NO USE TAIWAN
China banned cryptocurrencies on Tuesday, 19 May. The ban forbids any financial institutions and payment companies from doing business related to cryptocurrencies.

Markets responded negatively, and the move led to a plunge in cryptocurrency prices worldwide.

The ban comes as China is testing out its own digital currency, called the DCEP, or "digital yuan".

RUNDOWN SHOWS:
1. Map zoom from globe to China, flag map, DCEP coin icon rotates above map
2. People's Bank of China building appears over map, chains tie bank to country
3. Bitcoin with robot arm appears, cuts chains, Chinese citizen doing online payment
4. Government officials with CCP badges watch citizen on monitor, can see transaction
6. Police arrive at citizen's door, she looks shocked, is arrested over transaction

VOICEOVER (in English):
The South China Morning Post reports that China's sovereign digital currency, called the DCEP or Digital Currency Electronic Payment, is already undergoing trials.

This so-called "digital yuan" is managed privately by the People's Bank Of China under a centralised system, which is the complete opposite of most forms of cryptocurrencies — which are designed to disperse power away from the government.

Unlike cryptocurrencies, all transactions with the digital yuan would be completely traceable by the Chinese government.

The database can be checked in real time and can be used to keep digital records and checks against citizens who have committed money laundering, tax evasions or similar offences.

The DCEP will be used to simulate everyday banking activities; including payments, deposits and withdrawals from a digital wallet.

Online payment services like Alipay and WeChat Pay are already popular payment methods in China, with mobile transactions accounting for four of every five payments in 2019.

SOURCES: South China Morning Post, Reuters, Futurism

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