Chinese Firms Collaborate With Chinese Central Bank to Launch Digital Yuan

[G.Belaci]

The Chinese central bank - the People’s Bank of China (PBoC) - is making new partnerships with local companies to test its central bank digital currency, Digital Yuan.

Two weeks back, the Chinese central bank partnered with ride-hailing giant Didi to test the use of the Digital Yuan across Didi’s massive customer base. Taking it even further, the central bank has now partnered with 20 other local companies in an aggressive push for its Digital Yuan use.

For the testing of Digital Yuan, the PBoC has roped-in some of the state-owned Chinese banks as well as some of the giant telecom players like China Mobile, China Telecom, China Unicom, and Huawei.

As per the reports, all the participating banks have converted part of their deposits into digital currencies and is looking for sectors to push the use of Digital Yuan. Besides, the banks have also developed and tested all the wallet platforms required to store the digital currency.

For the initial real-world testing, the PBoC decided to pay the salaries of the state-employees in four cities - Chengdu, Shenzhen, Suzhou, and Xiong’an - in Digital Yuan.

A major aggressive push was when the PBoC partnered with Didi to test its Digital Currency Electronic Payment (DCEP). Didi Chuxing has over 550 million users across 440 cities that provides a sizeable sample to test the Digital Yuan.

PBoC’s another major partnership is with the Tencent-backed food delivery startup Meituan Dianping to test and trial the digital currency.

For the deployment process of the entire project, the PBoC has also collaborated with local tech giants like AliPay and WeChat. Both these companies have a strong footprint in the FinTech and the digital payments sector.

Additionally, PBoC is said to be in talks with some of the country’s biggest retail chains like Subway, McDonald’s, Starbucks, however, the details are not yet public. Additionally, PBoC is working out a partnership with video streaming app Bilibili which has a user-base of more than 170 million users.

Although China has been an early participant in the CBDC development, other big economies are taking similar route. UK’s Bank of England is working to test the introduction of CBDC in the country’s financial system. BoE governor Andrew Bailey said that in a few years “we will be heading toward some sort of digital currency”.

On the other hand, the U.S. is also warming up to the idea of digital currencies. Last week, the U.S. Regulator gave a green for national banks to provide cryptocurrency custodial services in the market. The lawmakers are also actively considering the prospects of having a Digital Dollar going ahead.

Source: https://www.worldcoinindex.com/news/20-more-chinese-firms-collaborate-with-the-chinese-central-bank-to-launch-digital-yuan

[TomPluz]

This initiative from China is being watch by many other countries big and small. Soon we can be able to witness countries using, promoting and exchanging their own sovereign digital currencies. Personally, I am in favor of this as we can be able to save many tress and resources printing fiat money.

[ashraf786100]

From the point of view of the chain, this order is also seen in many other cases. Soon we will be able to use our own free digital censorship, tweaks, and tweaks to make a difference. For the most part, we have managed to hide many good trees and walls in this area.

[edmundo]

This was always going to be an option seeing how massive cryptocurrency has grown and its popularity amongst the Asian Community. Blockchain has several benefits and due to China's ever increasing technological demand, it was always going to be a thing of when and not if. This will likely draw blockchain to the grassroots as well as local community in China leading to more expansion.

[Astra]

It is predicted that the dollar may soon lose its value as the world reserve currency and the Chinese yuan may well take its place. Therefore, the digitized yuan can take a significant position among stablecoins.

[Noverteno]

This initiative from China is being watch by many other countries big and small. Soon we can be able to witness countries using, promoting and exchanging their own sovereign digital currencies. Personally, I am in favor of this as we can be able to save many tress and resources printing fiat money.

Moreover, the yuan and its digital counterpart may soon become the global reserve currency instead of the dollar. China's economy is growing and strengthening, while the US is doing worse. The coronavirus pandemic may become the last straw for her, after which the United States will no longer be the former financial monster.

[labonikhatun]

China is raising its concerns with various banks to reduce the damage caused by the epidemic. This is a very good step for China to introduce digital yuan. China is far ahead in terms of crypto use, so they will be able to overcome the crisis very quickly through the digital yuan. The demand for Fiat currency is high among the countries of the world. Banks easily replace it.

[Tutte]

chines has always been a crypto friendly country, am not surprise to here they are working with their central bank to create a digital yaun, maybe this can help in some ways the boost their economy even though they are not as affected as many other countries.

[Joyjoyce0]

This development is good for crypto. Institutional investors and users coming to crypto is a great thing for the future of cryptos. Soon many other government departments will come on board too.