April 23, 2024

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

The People's Bank of China will test its own digital currency in two cities</span>China will test its own digitalcurrencies in two cities!!! The train has started!!&#8221; src=&#8221;/wp-content/uploads/2019/12/ffd2784d4918b92f1ce3efed31db68a3.jpg&#8221; alt=&#8221;The People's Bank of China will test its own digital currency in two cities!!! The train has started!!&#8221; />
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 the electronicpayments based on its own digital currency (DC/EP), the Central Bank cooperates with seven controlled state-owned companies, four of which are commercial banks, and the remaining three are telecommunications giants.

Previously, head of the payment and settlement divisionNBK decisions Mu Changchun said that competition will be created between companies. The organization that is 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.

Let us recall that last week the EU authorities also announced their intentions to study the prospects for creating a single digital currency, although they are not yet ready to take active action.

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