Can you imagine what a nightmare digital Yuan would be? They would build in all sorts of tracing mechanisms, backdoors and BS. No one trusts communists. Communism is anathema to free markets and liberty.
LOL. Not at all.
China has been on the path to become the world's biggest economy (hint that's why US has been afraid and started a war with China a couple of years ago which is escalating every day), one step in becoming the dominating world economy is to have their currency replace US dollar. Things like "Digital Yuan" are meant to serve that purpose. It would be just as safe and just as centralized as any other digital currency you are using in the banking system.
None of it has anything to do with bitcoin though.