Chinese officials finally decided to uncover the new digital yuan. Recent news appeared about open-ended trials of China’s national digital currency (DCEP).
As part of a trial, Suzhou municipal government employees and industry employees would get 50% of their transportation allowances in the digital currency. According to an official report, the Bank of China, the Agricultural Bank of China, the China Construction Bank, and the Commercial Bank of China, will all distribute DCEP to employees.
Moreover, official news also confirmed that Alipay, Alibaba’s affiliate mobile payments application, offered its assistance in the development of the digital currency, distribution, and arranging mechanisms related to payment channel.
China Continues DCEP’s Development Amid The Pandemic
Since the pandemic outbreak, the Chinese officials mentioned numerous times that the development of the digital Yuan was “progressing smoothly.” In December 2019, the Public Bank of China planned to introduce the digital currency pilot in major cities of China, including Chengdu, Xiongan, Shenzhen, and Suzhou.
Earlier this week, the Agricultural Bank of China has launched a piloted initiative to test its digital crypto wallet. However, only a limited amount of users are permitted to register accounts on the crypto wallet application.
Chinese officials haven’t given any work plan for the DCEP like how the digital currency can be transferred to the municipal government employees.