China’s Central Bank Likely to Pilot Digital Currency
Tuesday, 12 10 2019, Category: Technology, Country: China
The People's Bank of China is said to be preparing to launch pilots for its digital currency in at least two major cities.
As reported by Chinese financial news source Caijing on Monday, the central bank is "expected" to launch the tests of the fully digital yuan in Shenzhen and Suzhou. Other places may also see trials.
The tests are likely to include the participation of state-owned partners. These comprise the "Big Four" commercial banks – the Industrial and Commercial Bank of China, Bank of China, China Construction Bank and the Agricultural Bank of China – and three telcos, China Telecom, China Mobile and China Unicom.
The pilots will see the digital currency, dubbed digital currency electronic payment (DCEP), applied in real-world scenarios such as transportation, education and healthcare, Caijing says. Partner banks will be able to design their own trials scenarios for DCEP.
The first of two pilot phases will be smaller scale and start at the end of 2019. The second, later in 2020, will be a larger-scale effort in Shenzhen, according to the report. If all goes well, a full launch of DCEP is expected soon after the pilots.