State-owned commercial banks in China are the latest organizations to commerce testing of the national digital currency. The digital currency is being used as these banks for transactions, and they are also considering how it can work offline. Despite these developments, the official data for the main launch of China’s digital currency still remains unknown.
Banks conduct large-scale testing of China’s digital currency
Big Four state-owned commercial banks in China began large-scale internal testing of the digital Yuan on Thursday, according to South China Morning Post, which cited the report from 21st Century Business Herald. The banks include the Agricultural Bank of China, the China Construction Bank, the Industrial and Commercial Bank of China, and the Bank of China.
The report informed that these banks were testing China’s digital currency in popular cities like Shenzhen, together with the People’s Bank of China, the country’s central bank. The participants used an app in testing the digital currency. They were able to credit their accounts, withdraw, and perform other functions after registering with their phone numbers.
Additionally, the workers at the state-owned banks could also pay bills and perform money transfers using the national digital currency, according to 21st Century Business Herald. Having tried the digital currency, the report further mentioned that the banks are considering a scenario wherein China’s digital currency can be used offline – without an internet connection.
How long until DCEP launches?
China has since been announcing partnerships and developments, which somewhat paints that the digital currency will be launched sooner. However, the date for the launch of China’s digital currency remains unknown. Speculations held that the long-planned digital currency might be released sometime next year, as there are still challenges that need to be addressed.
One certain thing with the digital currency is that it will constitute an important part of the country’s economy. Previously, the central bank reportedly said that the digital currency would come as a replacement for M0. However, the ex-vice president of the Bank of China said the digital currency would replace every currency, not just M0, i.e., the amount of cash in circulation either in the form of coins or notes.