Aug 24, 2020 12:21 UTC
Aug 24, 2020 at 12:21 UTC
China’s Digital Yuan Trials Supposedly Limited To Small Retail Transactions
The People’s Bank of China (PBoC) proclaimed that the test run of its central bank digital currency is presently restricted to small retail transactions. Rendering to the Global Times on Aug. 24, the central bank has elucidated some details concerning the recent digital yuan correspondingly known as digital currency electronic payment, or DCEP to address rumors regarding the scale and scope of recent pilot projects.
Some Chinese internet users claimed that an individual in Shenzhen received a large amount of PBoC’s digital currency after selling local real estate., an assistant professor of the Gaoling School of Artificial Intelligence at Renmin University, Wang Peng held:
“At its current stage, the test’s primary goal is to ensure the digital currency’s operation runs smoothly & safe, and to determine how DCEP is distributed from the central bank to financial institutions. Only when trials in retailing are successful will they be carried out in large transaction scenarios,“
The rumors likewise stated that the digital yuan might perhaps not be converted into banknotes. A PBoC employee responded by stating that the digital currency is legal tender in China and can be transformed into banknotes at a rate of 1:1. As lately reported, DCEP trials were expanded to include Beijing, as well as Tianjin and Hebei provinces. Previously, it was recognized that the tests would be conducted in Hong Kong’s Greater Bay Area, a megapolis consisting of nine cities, including Guangzhou, Shenzhen, as well as Hong Kong, and Macau. It is also extensively known that China had been steering industrial-scale internal testing by state-owned banks of a digital currency wallet designed especially for its CBDC.
Despite the fact of the launch of China’s digital currency seems to be particularly close, there are many details concerning its features and limitations that are not yet known to the public. As dedicated analysis illustrates, many questions persist unanswered regarding DCEP’s privacy, scope & utility.