China's Central Bank to expand digital currency trials to more cities

China's Central Bank to expand digital currency trials to more cities

People’s Bank of China is reportedly looking to expand the trial of its digital yuan to more cities in view of the promising response offered by the market towards the benefits of using CBDC (central bank digital currency) in both the Winter Olympics venues as well as in the pilot cities where it was tested.

As per reports, the transaction scale has been growing steadily. Meanwhile, the further step will be to include more crime prevention and privacy protection while the bank will be researching the impact of the coins on the financial system.

Along with the digital yuan, nationally issued CBDCs, could make interbank and retail payments more accessible and structured while providing potential benefits for cross-border payments.

The trials were conducted in Shenzhen, Chengdu, Shanghai, Hainan, Qingdao, Xiong’an, Dalian, Suzhou, Changsha, Xi’an, and the closed loop of the 2022 Winter Olympic Games.

The trials will now be conducted in Tianjin, Fuzhou, Xiamen, Chongqing, Hangzhou, Huzhou, Wenzhou, Shaoxing, Ningbo, Guangzhou, and Jinhua cities.

Zhangjiakou, Beijing, the Winter Paralympic Games, and the Winter Olympics will keep using the coins.

some other countries and banks are also working to consider digital coins, including the BIS (Bank for International Settlements) and four central banks, who have persuaded the blockchain-based platforms for a global CBDC technical standard.

A report also notified an agreement that the DLT (digital ledger technology) based on blockchain was an ideal way of streamlining payments. Still, there wasn’t an explicit blockchain platform to use yet.

The BIS plan piloted two permissioned protocols, one of which was developed on Quorum, the blockchain platform designed by JPMorgan based on Ethereum and R3’s Corda, a digital lender technology platform that has been designated as a blockchain and not a blockchain.

Source Credit - https://www.pymnts.com/cbdc/2022/chinas-central-bank-to-expand-digital-yuan-trials-to-more-cities/