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China Debunks CBDC Rumours: CBDC Is Currently Only For Small Transactions

Crypto

According to the People’s Bank of China (PBoC), the country will only be testing its digital yuan with small businesses and retail transactions. The PBoC said this in response to stories floating through the grapevine about the CBDC.

The PBoC began testing its digital yuan, in preparation for a full scale release. However, recent rumors have suggested several claims regarding the method the agency is currently using to handle the sale.

According to a report from media platform Global Times, several stories have been going around that someone in the Shenzhen region received a large amount of the digital yuan shortly after the person sold some real estate. The rumor further added that the CBDC could not be changed to banknotes.

However, a PBoC staff has said that that the digital yuan is pretty much the same thing with the regular currency, and is convertible with banknotes 1:1.

At the moment, China is running several simultaneous pilot tests. The tests are going on in Shenzhen, Suzhou, Chengdu, and Xiongan.

For a while now, China has been working hard on its CBDC, in a bid to beat other countries to the punch. While many central banks are currently working on several different versions of a CBDC, China seems to be well ahead of the pack.

Image Credits: Pixabay

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