Recent social media posts show that China might soon be ready to issue it’s Central Bank Digital Currency (CBDC), and is currently in its testing phase.
Recently, there have been screenshots circulating on major Chinese social media platform WeChat, showing an app for the CBDC. The pictures were shared on Twitter by Binance executive director Ling Zhang.
Zhang also revealed some more information about the CBDC. According to her, the app is already available for the public to download. However, its use is currently restricted to four cities in the country including Suzhou, Chengdu, Xiongan, and Shenzhen. Binance CEO Changpeng Zhao also retweeted the post.
According to a news report, the People’s Bank of China (PBoC) says that the CBDC will contribute in a few ways, to the financial clime in China.
“[It will] strengthen the top-level design, unswervingly advance the research and development of legal digital currency, systematically promote the reform of cash issuance and return systems, and accelerate the promotion of banknote processing business, issuance of bank guards and issuance funds.”
China has been developing its CBDC since last year. Many assumed that China saw the need to do this shortly after Facebook announced plans for its own cryptocurrency, the Libra.
In December 2019, China said the CBDC is ready and testing would begin soon.
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