China Tests Digital Yuan In Beijing And Neighbouring Regions

Economic powerhouse China has revealed plans to expand its digital yuan testing to more regions across the world.

In a statement released on August 14, 2020, the Ministry of Commerce of the People’s Republic of China announced plans to expand the digital yuan testing program to several cities and provinces across the country. Indeed, the Chinese digital currency pilot program will cover Beijing, Tianjin, Hebei, the Yangtze River Delta, Guangdong, Hong Kong and Macao.

According to the Ministry, the cities most favorable to the first experiments are the richest ones in the country. However, less prosperous cities that meet certain conditions can also serve as testing laboratories. The tests will be conducted by the People’s Bank of China (PBOC), which corresponds to the country’s central bank.

Initially, the PBOC had planned to launch the tests in four cities namely: Shenzhen, Suzhou, Chengdu and Xiong’an. Chinese giant DiDi Chuxing has partnered with Chinese Central Bank to test the digital yuan.

The start date of this pilot program has not yet been communicated. However, the development of the monetary policy of this digital currency should be finalized by the end of the year, according to the estimates of the said ministry.

It is since 2014 that the PBOC has been carrying out research and development work on this digital yuan. The Commerce Ministry was therefore quick to point out that the government’s relentless efforts are aimed solely at improving the Chinese economy.

It will be interesting to see how this develops in the coming months as the Asian nation looks to dominate the crypto scene.