China is indicating to expand it’s CBDC (central bank digital currency) pilot project plan in more cities for soon to be launched its so-called electronic payment system (DCEP) Digital Yuan).
Reportedly, China’s Commerce Ministry said that China wants to include more cities in its pilot for the national bank digital currency (Digital Yuan) project. All the testing operations would be led by the People’s Bank of China.
On Aug 11, WSJ while citing the statements of Chinese Commerce Ministry mentioned that China’s digital currency pilot project is going to encompass China’s sprawling capital Beijing and the adjoining provinces from the north like Tianjin and Hebei, from the south- the Yangtze River Delta, the wealthy southern coast, Guangdong province, and including other neighboring cities of Hong Kong and Macau.
Along with the wealthy southern coast, the planning is to also include some of the poorer central and western regions those meeting certain requirements to run the CBDC (digital Yuan) trials.
According to China’s Commerce Ministry, Chinese officials endeavoring to upgrade the country’s economy by repositioning China into higher-value industries for which they are encouraging innovation via broader use of the digital currency and artificial intelligence.
The Timeline Still Not Decided For China’s CBDC
As per the reports, the timeline for the expanded pilot project hasn’t decided yet. However, the Commerce Ministry gave the time frame to complete the policy design structure for Digital Yuan by 2020 end.
Earlier, reports have mentioned that China tested the CBDC pilot in four cities Shenzhen, Chengdu, Suzhou, and Xiongan with the help of a trial wallet app designed by ABC– The Agricultural Bank of China- One of the “Big-four” banks in the People’s Republic of China.
Reportedly, the test was conducted internally by the PBOC and some civil servants received a few bucks from their salaries in the new digital currency. Allegedly, people can link the wallet app with their existing bank accounts and track the transactions hassle-free.
Like many other nations, the People’s Bank of China (PBOC) is researching and planning for digital currencies since 2014, though, China seems to have an edge over others to execute its plans staunchly with an eye on global markets.