China upping tests of digital currency
CHINA has stepped up major trials of a digital alternative to its paper currency. News of China’s moves comes as the Bank of Jamaica invites interested parties to test a central bank digital currency in its recently established Fintech Regulatory Sandbox.
Select employees from the Agricultural Bank of China, Industrial and Commercial Bank of China, China Construction Bank, and Bank of China have started using the digital yuan to transfer money and pay for services.
They download the digital yuan app which then uses their ID number and checks to confirm their clearance to use the digital currency. The app connects to their digital wallets, which in turn connects to their bank accounts.
The digital yuan has been in the works since 2014 in test cities of Shenzhen, Suzhou, Chengdu, and Xiong’an, a new satellite city near Beijing.
The Chinese Government plans to test the digital currency during the 2022 Beijing Winter Olympics, but details on implementation are currently limited. Despite widespread speculation, there is no official timetable for the national roll-out of this digital alternative to cash.