- China's Ministry of Commerce stated recently that it plans to expand its digital yuan testing.
- So far, tests were conducted in a handful of the largest cities in most developed regions.
- Now, China plans to introduce its CBDC to several other cities, and potentially some poorer regions, as well.
A new report published by the Wall Street Journal earlier today indicates that China might be planning to step up the tests for its native cryptocurrency, the digital yuan. The nation already started testing it in several cities over the past year. Now, however, reports indicate that it is planning to expand these tests.
Expanding the tests to new regions
According to the report, China’s Ministry of Commerce stated that the central bank digital currency (CBDC), known as DC/EP, will soon commence testing in a number of new cities. The plan is to introduce it into major cities in most developed regions.
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The most likely regions will include Guangdong province, Hebei province, and possibly Yangtze river delta. As for the cities themselves, DC/EP, commonly known as digital yuan, will be introduced to Beijing, Hong Kong, Tianjin, and Macau.
However, the ministry doesn’t plan to stop there. It added that the same awaits some of the poorer regions in the western and central parts of the country. This will depend on whether or not they can meet some specific requirements, but if they are able, China does plan to use the opportunity to introduce its CBDC there, as well.
Tests likely to start by the end of the year
Unfortunately, it is still unknown when the new wave of tests and trials might commence. However, the ministry seems confident that it might happen later this year, possibly near the year’s end.
As mentioned, multiple regions have already been testing it for a while, including Xiong’an, Shenzhen, Suzhou, and Chengdu. Meanwhile, the Bank of China also teamed up with a number of companies, most owned by Tencent.
Some examples include a streaming platform, Bilibili, a food retailer called Meituan-Dianping, as well as an Uber-like startup, Didi Chuxing.
Lastly, the ministry added that it expects that the use of emerging technologies, particularly cryptocurrency, blockchain, and AI, to be highly beneficial for the country’s economy. Meanwhile, it will encourage ‘higher value’ industries, along the way.