- 1.1 billion RMB worth of CBDC transactions were conducted between April and August.
- The Chinese government plans on testing out the CBDC in the upcoming Winter Olympic Games.
The Deputy Governor of the People’s Bank of China (PBoC), Fan Yi Fei, shared some insights about the country’s CBDC (central bank digital currency) trials during the virtual SIBOS 2020 banking conference. Apparently, CBDC trials have crossed 3 million transactions between April and August in the cities of Shenzhen, Suzhou and Xiong’an. During this time period, 1.1 billion RMB (~$162 million) worth of transactions was conducted.
Positive progress of China’s CBDC
China’s CBDC, aka “digital currency, electronic payment” or DCEP, is enjoying positive progress and has already covered over 6,700 payment scenarios, as per the deputy governor. These scenarios range from transportation tickets, bills to government services. However, PBoC maintains that DCEP has solely covered micro-transactions.
The DCEP tests have seamlessly integrated with existing payment methods like QR codes and facial scanners. As per Yifei, more than 120,000 personal and corporate digital wallets for the DCEP were created since the trials' inception. Back in August, China’s Commerce Ministry announced plans to extend the CBDC trials in Beijing, the Yangtze River Delta region, the provinces of Tianjin, Hebei and Guangdong, and the cities of Hong Kong and Macau.
What are the future plans for the CBDC program?
During the speech, Yifei insisted that the DCEP is a critical component of China’s future financial infrastructure. Plus, the government plans on testing out the CBDC at the 2020 Winter Olympic Games. It remains to be seen if the DCEP can adequately compete against the existing digital payment platforms in the Chinese market – Alipay and WeChat Pay.
Reactions from Twitterverse
General reactions surrounding CBDC have been somewhat mixed.
China Digital Currency Could Revolutionize Global Payments if users are willing to pay the price of surveillance. #DCEP #payments #cryptocurrency https://t.co/1BY8sD34hO
— Patti Hewitt (@PaymentGal) October 7, 2020
to challenge the US, u need a strong currency. DCEP is all about currency war.
— Louis Curran (@CurrencyWar1) October 7, 2020
everything you've seen from china through COVID, RESHORING AND TRADE WAR is about keeping the YUan strong. They dont want to emulate the Euro when it launched and dropped 15% immediately.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.