Beijing uses the acronym DCEP to refer to its forthcoming digital currency electronic payment system and, as Matthew Gu noted, has “borrowed a lot of its technological details from blockchain,” including concepts such as UTXO.
So, Will China's Digital Yuan Target the Dollar Or Bitcoin?
I think they would target bitcoin as it indicated that it is a digital currency. But what bothers me is that isn't USDT a digital currency of the US dollars? If they would make it decentralized and a Bitcoin-like payment system, then they are indeed targeting Bitcoin. But if they would only make it centralized and tethered it to their local fiat, they might be targeting the dollar or USDT to be exact.
Whether they would be successful implementing their system, it would still requires them a hard time (even close to impossible) surpassing the Dollar and the Bitcoin.