In its quest to launch the digital Yuan, the Chinese government has announced a week-long test of the digital currency in the Shenzhen region.
The Chinese government has further boosted the digital Yuan launch after it announced plans to test it in Shenzhen. Recall that the government has been running pilot tests on the new digital currency, which took place in four strategic locations around China. This further testing will see around 50,000 citizens residing in Shenzhen receive approximately 10 million Yuan of the new digital currency. This new currency would be used to purchase goods and services from selected vendors across the city. The news is coming after the government announced earlier that the 10,000 toy vending machine that would be rolled out would begin to accept the digital Yuan.
China set to test the digital Yuan at the 2022 winter Olympics
This development means that China has already gone farther than most nations worldwide in the race to debut the Central Bank Digital Currency (CBDC) officially. According to the report, the 50,000 beneficiaries of the test currency would be picked via a lottery. The lucky participants would be provided with the sum of ¥200, which equals $30 to be spent at strategic service, providing vendors across the city. The report states that 3,389 merchants have been approved for the testing phase, including gas stations, supermarkets, restaurants, and other key vendors.
The Shenzhen trial, which will take place for a week, is just a stepping stone to a vast number of test applications that the country has earmarked to be rolled out in the coming months. Furthermore, the government has said this new testing is taking place to ascertain the currency’s credibility and hope to test it on a larger scale at the winter Olympics in 2022. Various tests are said to have been carried out on the currency across the country in different provinces, leading to the Shenzhen test.
Four public banks involved in internal testing of digital Yuan
In another development, four significant banks across China have been involved in the digital Yuan app’s heavy testing in the last few months. People’s Bank of China, Agricultural Bank of China, the industrial and commercial bank of China, and the construction bank of China are said to be the banks leading the internal testing of the app. Those involved in the trials would be able to use the digital Yuan to deposit on their accounts, withdraw money, facilitate payments, and send money to people within the country.
This testing is seen as a vast improvement for China after about six years of working on the idea of launching their Central bank-backed digital asset. Notably, countries abroad would keep their fingers crossed to see what the future holds for the digital Chinese Yuan and their respective Central bank-backed digital assets. Meanwhile, the Deputy Governor of the people’s Bank of China has confirmed in an interview that the digital Yuan has been used to facilitate about 3.13 million transactions worth about 1.1 billion Yuan.