- China’s central bank rolls out digital currency trials in Shenzhen, Suzhou, Chengdu, and Xiong’an.
- The progress China has made in regards to central bank digital currencies is unmatched by any other country.
Four cities in China, Shenzhen, Suzhou, Chengdu, and Xiong’an have been selected to carry out the trials for the country’s digital currency. The trials were confirmed by the spokesperson of the People’s Bank of China PBOC). However, details of the exercise remain undisclosed.
Recently, the Wall Street Journal said in a report that civil servants in the Suzhou’s Xiangcheng district were expected to receive up to half of their transport subsidy in the digital currency. The funds would be channeled to them through a smartphone application.
Several screenshots of a digital currency wallet app also surfaced online, highlighting features such as sending and receiving of payments. The wallet app is said to have been developed by the state-owned Agricultural Bank of China (ABC).
The date for a national rollout of the digital currency remains unknown. Yi Gang, the governor of the PBOC confirmed last September that the purpose of the digital currency is to introduce an electronic payment system as well as take the place of a part of the cash in circulation. According to the CEO of Sino Global Capital, Mathew Graham, China’s progress with a sovereign digital currency is unmatched by any country in the world.
It is difficult to speculate on exact timing.
But in our view, this is a strong indication the project is on course and proceeding step by step.
Share
