Chen Yulu, the Peoples Bank of China (PBOC) deputy governor, has urged China to speed up efforts in launching the digital Yuan. This is even though China leads globally in the race for a CBDC launch.
According to the PBOC deputy governor, research and development for the digital Yuan should proceed faster. Chen said that pilots should show the CBDC can be controlled and make payment safer.
The PBOC deputy governor also advocated that the digital Yuan should be independent and made a high-quality element in China’s financial infrastructure according to local reports.
China dual circulation key to digital Yuan strength – PBOC deputy governor
As he urged the country to accelerate the CBDC launch, Chen also voiced support for the dual circulation economic strategy China recently announced. The PBOC deputy governor noted that t is compulsory that serve dual circulation with fintech innovations.
The dual circulation strategy involves China reducing its dependence on foreign markets and technology as the country achieves its long term development plans. The plan emanated from China’s deepening rift with the US.
According to Xi Jinping, China’s President, the model will rely on the domestic cycle of production, distribution, and consumption – for its development, supported by innovation and upgrades in the economy.
So far with digital yuan launch
Despite Chen urging china to accelerate launching the digital Yuan, the currency is close to its full launch.
Since research into the digital Yuan began in 2014, it has progressed so much as it is being tested in major cities with banks and commercial enterprises. The currency test began several months back.
More recently, Shenzhen and the PBOC planned some form of an airdrop for the digital Yuan. A kind of lottery was launched where residents can apply for about 10 million digital Yuan, which they would be paid.
Reportedly, several retailers in China are in the queue to adopt the digital Yuan as other countries are yet to find their bearing regarding their CBDC launch.