After conducting a pilot program in four Chinese cities, the Commerce Ministry of China is now considering the idea of expanding its central bank digital currency (CBDC) Digital Yuan’s trial program to other major cities of the country as well. The ministry said in an official announcement issued on the Wall Street Journal on August 14, 2020, that it is going to expand the testing program of China’s national CBDC to other cities which include Beijing the Capital of China as well.
Digital Yuan’s pilot program is all set for expansion
As reported by the Wall Street Journal, the pilot program of China’s digital Yuan is now all set to see further expansion in the country. The Commerce Ministry is taking the trial program to Beijing, Hebei, Guangdong, Tianjin, and some other surrounding provinces. As the ministry stated:
“Carry out digital RMB pilot projects in the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and the pilot regions in the central and western regions where conditions permit.”
The ministry has not revealed when it plans to start the digital yuan’s pilot program in these cities. However, it has said that hopefully, the completion of the policy framework of the project may occur by the end of the year 2020.
Furthermore, the ministry added that China’s central bank the People’s Bank of China (PBOC) will lead the pilot program in these cities like before. The country’s central bank rolled out the trial program of digital yuan at the beginning of the year in four cities of China including Suzhou, Xiong’an New Area, Shenzhen, and Chengdu.
No update on the launch of Digital Yuan
Chinese digital Yuan’s testing all across the country is going well. Recently, PBOC’s Digital Currency Research Institute joined hands with Didi the ride-hailing giant of China which is likely to collaborate with the central bank on the testing of its CBDC.
However, there has not been released any update on the launch of the central bank digital currency by Chinese officials. It is still not known when China plans to roll out its digital currency.