China is definitely going to launch their Digital Yuan somewhere in the future and probably might use some of the blockchain technology
I wouldn't be so sure about that... The digital yuan is, basically, a little upgraded fiat. If China was into blockchain technology they wouldn't enforce bans on trading and who knows, maybe they'll even go as far as prohibiting mining activity (though I hope they realize the financial consequences).
The real reason for all this is gaining even more power and depriving people of privacy. The yuan, digital or not, will be backed by the government and they will have the opportunity to track every single money transfer, and the commercial banks will be the ones that distribute the coins to customers.
Simply no point in the blockchain for them.
Unfortunately the digital yuan is just the reason why they are banning everything else, because they want people to actually be in love with digital yuan but also they want people to not have any other option to handle neither, so you would be forced to use digital yuan and nothing else. Even owning USDT or BUSD or anything like that could become very punishable, like a huge fine and even maybe jail, we are talking about China here, these are the same people who murder another race just because they want to, so I am sure they can ban whatever they want as well, that way they will force whole china to use digital yuan and not crypto as much as they want.
In another nation things would not be the same, start a digital dollar in USA and nobody would care, you can't even properly ban it there but it is perfectly legal anyway (other cryptos) so only in china this idea could work and that is with forced situation.