What Comes Next for China’s CBDC?


ajax loader

The foremost Central Bank Digital Currency (CBDC) developed by China has reached another milestone. According to local reports in China, the digital currency suggests that the digital Yuan will proceed for testing in the province of Sichuan capital, Chengdu.

Similar to how the digital Yuan’s efficiency was tested in Shenzhen and Suzhou, among other provinces, residents of Sichuan are next in line to see how they will eventually adopt the digital currency into their everyday life.

Digital currency has proven to be a way forward in the Asian country as the pilot test of the CBDC has been a success with an impressive adoption rate. Similarly, P2P Bitcoin trading in the country has continued to rise with Blockvilla and OkEx launching P2P trading platforms in the country.

P2P marketplaces and OTC trading desks are argued to be the best platforms to buy Bitcoins in the country and are well patronized.

Multiple CBDC airdrops for Sichuan residents

During the testing, the Chinese government plans an airdrop of 30 million digital Yuan, worth $4.6 million.

Per the local report, Sichuan residents eligible for the CBDC trial would be selected after a lottery. They would be able to register from Wednesday, January 27th, 2021.

Users are to sign-up via “Tianfu Citizen Cloud” app, and then they choose a bank to open a wallet. Requirements for registrations include a Chinese mobile phone number, a second-generation ID card, and users’ mobile phone location in the Chengdu administrative area.

Lucky residents selected to test the currency will spend their free digital money in local merchants from February 4th to February 26th.

Chinese e-commerce giant also are planning to give 20 million digital Yuan, worth $3.1 million outside government’s Airdrop.

France behind China in CBDC launch

Most recently, the Central Bank of France recently released the results of its CBDC pilot testing held on December 17th. The pilot testing involved 2 million euros worth of shares settled on a private blockchain network provided by UK blockchain startup SETL.

The central bank further notes that it would continue to conduct more tests in 2021.

Similarly, 2020 was a year of huge expansion for cryptocurrencies. Central banks globally reported progress in their efforts to create CBDC with encouraging results from trial tests.

Central banks across Europe and the world have been accelerating their CBDC developments. This doesn’t mean any of these currencies will gain widespread adoption.

In an interview, Fed Chairman Jerome Powell said that the creation of a CBDC shall be on high priority this year. Powell also called it essential to combat what he described as “bad private-sector money.

Source: What Comes Next for China’s CBDC?

Add a Comment

Your email address will not be published. Required fields are marked *