Also known as the ‘e-CNY’ or the ‘Digital Currency Electronic Payment,’ the Digital Yuan is a digitized variant of China’s renminbi (RMB). The Digital Yuan is currently issued by the central bank, which is called the ‘People’s Bank of China (PBOC).’ Today, China allows the usage of the Digital Yuan for high-frequency and small-scale transactions in its territory. It's vital to note that the E-Yuan is not fully decentralized as it is issued by the country’s central bank. Many people have claimed that the E-Yuan isn’t truly a cryptocurrency since it doesn’t meet the ‘Decentralized’ criteria. However, the asset works similarly to cryptocurrencies and has the same system. While The Digital Yuan works as a cryptocurrency, it’s not exactly one; this new type of digital asset is called a “Central Bank Digital Currency,” or “CBDC.” In short, a CBDC is a digital currency issued by a government’s central bank, and it allows investors to trade on it as long as they comply with the law.