Media: The Central Bank of China is preparing to test the national …

Media: The Central Bank of China is preparing to test the national …

Media: Central Bank of China is preparing to test the national digital currency in two cities

The People’s Bank of China intends to test an electronic payment system based on digital currency (DC / EP) in Shenzhen and Suzhou, writes The Block, citing local financial publication Caijing.

According to the publication, the Central Bank has entered into cooperation with seven state-controlled companies: four commercial banks and three telecommunications giants. Their resources are planned to be used during the upcoming testing. Earlier, the head of the central bank’s payment and settlement solutions division, Mu Changchun, said that the regulator intends to create competition between companies, like “horse races” in order to achieve maximum quality in creating the necessary infrastructure. This is also stated in the latest publication..

The pilot program will target industries such as transportation, education, commerce and healthcare. Some banks have decided to partner with telecom operators to develop SIM cards with embedded digital wallets; others will create wallets on their own.

The testing in Shenzhen will be carried out in two stages. After a period of small-scale testing later this year, the authorities will be promoting DC / EP in the region throughout 2020..

As noted by Caijing, the People’s Bank of China has begun active efforts to launch a national digital currency, which has been in development since 2014, following the announcement of Facebook’s cryptocurrency initiative this summer..

Media: The Central Bank of China is preparing to test the national ...

‚ÄúPreviously, the central bank was in no hurry with this. Recently and quite suddenly, they have accelerated, “- said in a conversation with the publication representatives of several commercial banks.

According to the current model, commercial banks will be the first to receive digital currency from the regulator, providing in return their reserves in fiat currency. Users and business representatives will be able to register wallets with these banks and interact with digital currency with their help.

Earlier, the EU authorities announced their intention to study the possibility of launching a single digital currency, although they, unlike the Central Bank of China, are not yet ready to take active measures..

Media: The Central Bank of China is preparing to test the national ...
Media: The Central Bank of China is preparing to test the national ...

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