The People’s Bank of China (PBOC) confirmed last Monday that it has been internally testing its digital currency, known as Digital Currency/Electronic Payment (DC/EP), in four cities.
The central bank has also hinted that the system might see use during the 2022 Beijing Winter Olympics.
So here we are: after six years of behind-the-scenes digital currency research and development, and the second-largest economy in the world may soon become one of the first nations to digitize their national currency.
Although the central bank has confirmed little, Chinese media has painted the new currency’s launch as imminent.
Last week one of the four testing cities, Xiong’an, hosted a DC/EP “pilot promotion meeting,” during which 19 merchants including McDonald’s and Subway were invited to discuss the new digital currency, according to a local media report.
It has also been reported that the city of Suzhou will use the system to distribute transportation subsidies to local government employees in May.