China’s DC/EP digital currency will be tested for payment in Shenzhen and Suzhou
The People’s Bank of China (PBOC) will soon test the DC/EP digital currency for payment in Shenzhen and Suzhou cities. Previously, PBOC brought China’s DC/EP (Digitial Currency Electronic Payment) to big organizations in the country. For example, online retail giant Alibaba, internet giant Tencent and the same banking organization and an anonymous individual are part of the project. Including China Construction Bank, Industrial and Commercial Bank of China, Bank of China, Agricultural Bank of China, and Union Bank of China Banking Association. PBOC also encourages these banks to devise their advertising strategies for DC/EP.
China’s DC/EP is gradually being piloted in many industries
Several companies have collaborated with telcos to develop SIM cards with built-in electronic wallets. Others focus on building independent wallet applications. As such, it is highly likely that DC/EP will be piloted in industries such as transportation, education, commerce, and healthcare.
After the trial is completed later this year, DC/EP will be promoted widely in Shenzhen by 2020. Meanwhile, Suzhou City will also test the new currency. In November 2019, a PBOC-backed fintech company was looking for Blockchain experts in Suzhou. They will be primarily responsible for DC/EP research and development, as well as providing assistance to test new currencies.
Libra is the driving force behind the deployment of DC / EP
Since Facebook launched the Libra stablecoin project, PBOC has quickly accelerated its digital currency development plan ahead of schedule. Their ideas began in 2014. However, the PBOC was only beginning to speak on this plan. And things started to accelerate when Facebook announced the Libra project in June.
The local news Caijing stated:
“Previously, the central bank was in no hurry doing this. Recently, all a sudden, they accelerated.”
Under the new DC/EP model, commercial banks will first receive this currency from the PBOC by depositing RMB reserve money. Users and businesses will then register digital wallets with these commercial banks to use DC/EP.
China is not the only country with ambitions to issue digital currencies. As AZCoin News once mentioned, the French central bank governor announced his intention to test the national digital currency by 2020. At a recent joint meeting of the European Central Bank (ECB) and Belgium National Bank, ECB executive board member thinks that the potential of digital currencies is very high. The CBDC can also ensure that citizens can still use central bank money even when cash is no longer used.
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