- China begins massive digital Yuan allocation in Chengdu.
- Chinese Digital Yuan becomes the leading CBDC.
- Digital Yuan, not a threat to other centralized digital payment platforms according to PBoC.
The People’s Bank of China (PBoC) has announced that it will begin the roll out of its digital currency in Chengdu, China. This is coming at a time when the PBoC completed its initial digital Yuan trial in Beijing, Shenzen and Suzhou. While these initial trials led to the allocation of about 110 million Digital Yuan, it is expected that this latest trial on Chengdu, the Sichuan Province’s capital would be the largest.
China’s Digital Yuan Roll-Out
Central banks around the world have recently intensified their approach to the creation and adoption of Central Bank Digital Currency (CBDC). This is coming as a result of the recent spikes and drops in the price of Bitcoin and other cryptocurrencies, amid calls for their regulation. As a result the Chinese government and the PBoC have expanded their efforts, making the digital currency – the Chinese virtual money – the leading CBDC in the world.
It has been reported that about 40 million of this digital asset would be released from today, the 3rd of March to the 19th of March, to over 11,000 businesses in Chengdu, including JD.com, the largest online retailer in China.
Late last year, transactions involving the Chinese digital Yuan exceeded the 4 million mark, with the digital currency witnessing a large acceptance on the Chinese markets.
Other digital payment platform concerns
Following concerns over the digital Yuan dwarfing other forms of digital payment platforms in China such as WeChat Pay and AliPay, the PBoC has said that the introduction of the digital notes will not threaten these other payment platforms since they’re not on the same dimension. They said that while WeChat Pay and AliPay are wallets, these digital roll-outs are currencies which could be put into those wallets.
With this development, the Chinese are definitely ahead of other Central banks such as the European Central Bank and the Reserve Bank of Australia, which previously had indicated a drive towards CBDC.