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?
If it is controlled by China, a single, authoritarian entity, why use a block chain? Just use a database. It seems to be (like the Venezuela attempt at crypto) to be just a way for them to attempt to capitalize on buzzwords to get naive people to put currency into the yuan.
They want it for control of the people in their country and control over the people outside using it.