Months ago, China announced that its central bank digital currency (CBDC) was ready even though it didn’t specify a release date. Now, reports have it that the People’s Bank of China (PBoC) is planning to run a pilot test in a controlled environment.
Chinese media platform Caijing magazine has reported that the PBoC plans to begin the test in Shenzhen and Suzhou cities, and with a few major institutions including telecom firms and commercial banks. Huawei is said to be one of the firms that will take part in these initial tests.
The report also has it that this initial test will use a “horse race” method which means that each institution involved will be required to put forward a payment method it thinks would be the best fit for the bank. The most viable one would most likely be adopted by the PBoC and used to operate the CBDC.
Generally, China is making considerable progress with its digital Yuan and will most likely be the first country to officially launch a national cryptocurrency. The Chinese government had been developing the digital Yuan for quite a while but it is said that authorities decided to speed up the creation of the CBDC because of the progress Facebook has made with its Libra.
Image Credits: Pixabay