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?
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So, Will China's Digital Yuan Target the Dollar Or Bitcoin?
Short Answer is : Both
Long Answer : Digitalized Yuan + government trying to control the Mining farms of Bitcoins , they did not start the war just now , the competition was started much before .
Back in 2019 , they seised 7000 Mining machines :
https://cointelegraph.com/news/chinese-authorities-confiscate-nearly-7-000-crypto-mining-machines
After that , the court ruled Bitcoins as an asset which is quite contrary to what they would have done before : https://news.bitcoin.com/chinese-court-bitcoin-asset-protected-by-law/ , I do think what they are trying over the years is , first they tried banning Bitcoins but when they realized that it's not in their hands , they tried dominating it , when this also failed now they want to make their own digital Currency and also make the environment for Bitcoins better so that those people could very easily move to Digital Yuan and consider cryptocurrencies and digitalised assets safe and protected by the government. It's called playing with the mind
Now if it all goes well accordingly their economy will become stronger which would mean they would take over dollar . So I do think it's both.