Top-tier Chinese cities announce support for digital Yuan trials
- Beijing will join other leading cities, including Shenzhen, which have already held DCEP pilots.
- Per industry experts, these plans will help cement China’s efforts of launching the digital yuan.
- Experts also believe that DCEP’s launch will create a robust digital finance service sector.
Multiple Chinese are planning to underpin pilots of the country’s sovereign central bank digital currency dubbed Digital Currency Electronic Payment (DCEP). These plans are part of the cities’ government work plans for the year. Among the cities that have announced plans to support DCEP trials include Beijing, China’s capital, and Shanghai.
According to Beijing’s mayor, Chen Jining, the city intends to help hasten the development of innovative demonstration zones for FinTech and professional services this year. Jining added that Beijing would also promote the pilot application of the digital Yuan. He made these remarks while delivering a local government report during the opening ceremony of the fourth session of the 15th Beijing Municipal People’s Congress.
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Apart from Beijing, Shanghai also intends to back DCEP’s pilot programs this year. The city’s mayor, Gong Zheng, said that Shanghai would continue with its plans to open up financially and to promote the digital yuan. Zheng said this while delivering a government work report on January 24.
On the same day, Ma Xingrui, the governor of South China’s Guangdong Province, also promised that authorities would work ardently to help Shenzhen grow into an innovation pilot zone for DCEP. Xingrui’s statement came after Shenzhen started its third round of DCEP trials on January 20, distributing 20 million digital yuan (approximately £2.26 million) to the residents of Longhua district.
DCEP’s launch is quickly taking form
Per industry veterans, top-tier Chinese cities announcing support for digital yuan pilots indicates that the country is ready to expand the scope of DCEP trials. As a result, China will have built a strong foundation for the coin’s launch as other countries continue struggling to achieve this feat.
According to a Shenzhen-based crypto expert, the pilot programs are only the tip of a massive iceberg. The expert believes that once DCEP goes live, it will transform China’s financial industry and create a robust digital finance service sector worth billions of yuan.
This news comes after China first rolled out DCEP trials in 2020, where they quickly expanded from small-scale closed testing to large-scale open testing in a matter of months. The trials took place in several leading Chinese cities, including Suzhou, Chengdu, Xiongan New Area, and the aforementioned Shenzhen and Shanghai cities.