The deputy governor of the People's Bank of China announced the issuance of 1.100 billion digital RMB by the end of August to pilot the nation's CBDC digital currency.
Renminbi is the legal tender in China, also known by its unit, the yuan; for its part, the DCEP (Digital Coin Electronic Pay) It is the digital currency issued by the central bank (CBDC), known as the “digital yuan.” DCEP is the CBDC digital currency that has made the most progress worldwide in terms of its creation, development, and issuance. While some countries are still discussing the possibility of issuing their own digital currency, China is seen as the nation that could possibly launch the first CBDC. In fact, the People’s Bank of China (PboC) has been piloting its digital currency for several months; tests that are taking place in several important cities in the country together with large banking entities, such as the Agricultural Bank, and technological giants such as Huawei and JD.com.
Of this digital currency, the deputy governor of the PboC, Fan Yi Fei, said that by the end of August the bank had issued a total of 1.100 billion RMB, worth about 160 million US dollars. Fan Yi Fei's remarks were made during the annual SIBOS banking conference, organized virtually by the Society for Worldwide Interbank Financial Telecommunication. This conference brings together the most prominent personalities, entities, companies, firms and organizations in the global financial industry.
It may interest you: China: BSN integrated 6 blockchains into its service network, while WeChat is banned in the United States
World technological leader
In her speech, Fan Yi Fei pointed out that CBDC digital currencies were issued as part of the tests carried out by the Chinese central bank to study the feasibility and viability of using the currency in everyday payments by citizens, as well as in the commercial activities carried out by companies. It should not be forgotten that China, the Asian giant, seeks to position itself as an economic and technological leader in the world, massively adopting technology. blockchain for the design of a digital currency with international scope, which competes with the current hegemony enjoyed by the US dollar.
In addition, China is also designing a technological platform known as “the internet of blockchains,” the Blockchain Service Network (BSN), with which it seeks to complete its strategy to take the lead in the digital transformation of the economy, the financial system and global politics.
In this regard, Fan Yi Fei clarified that the PboC considers the digital RMB, digital yuan or DCEP to be an “important financial infrastructure for the future.” The deputy governor of the central bank stressed that the entity has completed “the architecture, standard formulation, research, function development, joint debugging and testing of the e-CNY system.” Likewise, Fan Yi Fei confirmed that to date, to carry out the tests of the digital yuan, more than 113 thousand personal digital wallets and nearly 9.000 corporate digital wallets have been created.
6.700 use cases
Fan Yi Fei confirmed that DCEP pilot tests are being carried out in cities such as Shenzhen, Suzhou, Xiong'an y Chengdu, which account for a significant portion of the country's population. During these tests, a total of 6.700 use cases have been tested, including bill payment, transportation services, catering services, purchases and consumption of basic products, government services and much more.
On the other hand, the PboC vice governor also pointed out that the tests will extend until the next Winter Olympics, which will be held in Beijing in 2022. Fan Yi Fei stressed that the adaptation of new technologies for the issuance of its own digital currency is an effective way for the nation to protect its monetary sovereignty, and even ensure interoperability to facilitate economical and highly efficient cross-border payments.
Continue reading: JD.com partners with the Central Bank of China to boost digital yuan development
