China is preparing to introduce the digital yuan in 2022. China is currently embarking on a digital yuan currency pilot project called E-RMB.

The Central Bank of China, the People's Bank of China, has started work on the project in four major cities, Shenzhen, Chengdu, Sunzhou and Jiangxi.

A portion of the government employees' salaries in the project will be paid in digital yuan.

Twenty different private businesses such as McDonald's and Starbucks have also participated in the project.

If successful, the Chinese government will be able to issue the digital currency nationwide by the time of the 2022 Winter Olympics.

The digital yuan is a big step towards bridging the gap with the US dollar. The US dollar is currently the world's most widely circulated currency, beginning in the early 1970's with the end of the gold standard.