- China allegedly plans a new way to test its digital yuan, currently known as DC/EP.
- The new test involves workers' travel subsidies scheme, where 50% of the subsidies will come in DC/EP.
- The country and its banks have not released official details, but reports claim that the tests will take place
The world has kept an eye on China’s development of digital yuan ever since the country’s central bank announced it. Now, with the coin finally in the testing phase, new reports are highly interesting, as they show the country’s ideas for its implementation.
The most recent information available says that China will test its CBDC in Suzhou, in Jiangsu Province.
China’s new tests of digital yuan are about to start
A new report from ChinSci-Tech, reveals plans to test the coin as part of the transport subsidies scheme. The tests will include enterprise and local government workers in the area.
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Another official report confirmed that Alibaba’s payment app, Alipay, significantly contributed to the coin’s hardware development. It also assisted in the distribution of the currency, as well as its payment channel technology.
The trial will see the payments of agencies’ and enterprises’ workers arriving partially in digital yuan. Only around 50% of the workers’ transport subsidies will arrive in this form. It is also worth mentioning that the coin is referred to as DC/EP (Digital Currency/Electronic Payment).
How will the coins be distributed?
Companies, institutions, and others in the Xiangcheng District of Suzhou also had to sign a crypto distribution agreement. They also had to install a digital wallet for each of their employees.
The tests also involve four banks — the Industrial and Commercial Bank of China, the Bank of China, the Agricultural Bank of China, and the China Construction Bank. Reports also speak of an official letter that says that all tests must include one of these banks. Enterprises can make their own choice, as long as they choose one of the mentioned banks.
As for the DC/EP, the central bank — the People’s Bank of China — has yet to release official information on the coin’s technical design. However, ChinSci-Tech reporters found some hints in Alipay’s five patents related to the project. The patents hint at some details, such as the potential for DC/EP to have a two-layer architecture. In addition, it might have a two-tier delivery system, also. Of course, none of this is official at this point, and there is no confirmation that Alipay will participate further.