February 4, 2023

The People’s Bank of China will test its own digital currency in two cities !!! The train started !!

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The People's Bank of China (NBK), which could be the first central bank to issue its own digital currency, will test the electronic payment system in Shenzhen and Suzhou.</p>

As part of testing electronic systemspayments based on its own digital currency (DC / EP), the Central Bank cooperates with seven state-controlled companies, four of which are commercial banks, and the remaining three are telecommunications giants.

Previously Head of Payment and Settlementdecisions of the NBK Mu Changchun said that between the companies will create competition. The organization that will be the first to provide the best tools based on the national digital currency will take over the entire market. Thanks to this, it will be possible to achieve the highest possible quality in the process of creating the necessary infrastructure.

NBK plans to build a system orientedto industries such as transportation, education, commerce and healthcare. Some banks decided to enter into cooperation with telecom operators to create SIM cards with built-in digital wallets, while others will develop wallets on their own.

Testing in Shenzhen will take place in two stages. First, small-scale tests are planned at the end of this year, and then the authorities will promote the state cryptocurrency. The local publication Caijing draws attention to the fact that China began developing the national currency back in 2014, but only started active operations after the announcement of stablecoin Libra this summer.

“Previously, this direction was not a priority and somehow they were in no hurry, but recently and quite suddenly, work has intensified,” said representatives of some commercial banks.

According to the current model, first digitalcommercial banks will receive currency from the Central Bank, providing in exchange their reserves in fiat currency. Further, users and business representatives will register wallets in these banks and use digital currency.

Recall that last week, EU authorities also announced their intention to study the prospects of creating a single digital currency, although they are not ready to proceed with active actions.

source: https: //bits.media/narodnyy-bank-kitaya-provedet-testirovanie-sobstvennoy-tsifrovoy-valyuty-v-dvukh-gorodakh/