• 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.


 

 

 


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


Recommended Content

Editors’ Picks

US presidential election outcome could shape the future of crypto

US presidential election outcome could shape the future of crypto

US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).

More Cryptocurrencies News
Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs beat Gold ETFs with 65% gain since launch

Bitcoin ETFs have reshaped the digital asset investment landscape since their approval in January. Their total assets under management climbed over $70 billion during the weekend, placing them ahead of other investment products, including gold.

More Bitcoin News
XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

XRP eyes 10% rally amid relisting across crypto exchanges and growing institutional demand

Ripple's XRP is trading at $0.5050 up slightly by 0.2% in the past 24 hours as it struggles to sustain a move above a key symmetry triangle resistance. Meanwhile, in its recently released Q3 report, Ripple noted the rising listing and relisting of XRP across crypto exchanges and global platforms.

More Ripple News
Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum Price Forecast: ETH struggles below $2,500 amid State of Michigan pension fund investment in ETH ETF

Ethereum is trading near $2,420, down about 1% on Monday, but could bounce off a key descending trendline close to the $2,258 historically high demand zone. Meanwhile, the State of Michigan pension fund revealed an investment of $11 million in ETH exchange-traded funds.

More Ethereum News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP