The People’s Bank of China (PBoC) announced that it will begin the launch of the digital currency in Chengdu, China. This comes at the end of a period when PBoC completed its first digital Yuan trial in Beijing, Shenzhen and Suzhou. While these initial trials led to the allocation of about 110 million Digital Yuan, this latest trial in Chengdu, the capital of Sichuan Province, is expected to be the largest.
Digital yuan work continues unabated
Central banks around the world have recently intensified their approach to the creation and adoption of the Central Bank Digital Currency (CBDC). This comes amidst regulatory calls, as a result of recent spikes and dips in the price of Bitcoin and other cryptocurrencies. As a result, the Chinese government and PBoC expanded their efforts and made the digital currency, the Chinese virtual currency, the world’s leading CBDC.
About 40 million of this digital asset will reportedly be released today, from March 3 to March 19, at more than 11,000 businesses in Chengdu, including JD.com, China’s largest online retailer.
Late last year, transactions involving the Chinese digital Yuan exceeded 4 million, and the digital currency gained widespread acceptance in Chinese markets.
Are the concerns justified?
Following concerns about Digital Yuan overshadowing other digital payment platforms in China such as WeChat Pay and AliPay, PBoC said it would not threaten these other payment platforms as digital banknotes are not the same size. WeChat Pay and AliPay said that these digital outlets are currencies that can be put into these wallets.
With this development, the Chinese are definitely ahead of other central banks such as the European Central Bank and the Australian Central Bank, which previously stated that there is a move towards CBDC.