China’s Central Bank to Test Digital Currency With Banks, Telecom Companies

China’s Central Bank to Test Digital Currency With Banks

China’s central bank, the People’s Bank of China (PBoC), is reportedly looking to test its digital currency, named digital currency electronic payment (DCEP), later this year starting with commercial banks and telecommunications firms.

Per a report published by Caijing, the central bank is set to test the digital yuan in the cities of Shenzhen and Suzhou with the help of the Bank of China, the China Construction Bank, the Agricultural Bank of China, and the Industrial and Commercial Bank of China.

The digital currency’s tests will also include three telecommunications firms China Telecom, China Mobile, and China Unicom. During the test the DCEP will be applied in real-world scenarios such as transportation, healthcare, and education.

The test will bear two pilot phases and the first one will take place before the end of this year. The second one is reportedly going to be a large-scale effort in Shenzhen, and if it goes well the DCEP could go live after that.

The People’s Bank of China is hastening the development of its digital currency because of the Facebook-led Libra cryptocurrency’s announcement.

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