China has made its digital yuan a top priority, with China’s central bank already conducting pilot tests on the CBDC in some major cities. Recent news appears that China’s commerce ministry has finally decided to extend the testing program of the digital yuan in large cities, including the capital Beijing.
China ministry said, “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.”
However, Chinese officials haven’t given any work plan for these pilot programs, but the ministry has announced, the digital Yuan policy is supposed to be concluded by the last quarter of 2020.
China’s Central Bank Plan To Curb The Dominance Of Alibaba And Tencent
China is extensively pushing up the development of the blockchain ecosystem and digital currencies to a great extent. According to the report, the People’s Bank of China is looking to reconstruct the digital payments sector by affecting the dominance of Alibaba and Tencent. The report circulated in the media after claims of the central bank provoking an antitrust agency to start an inquiry against technology giants.
Market data and indicators reflect that Alipay, subsidiary of Alibaba’s financial, and Tencent’s WeChat Pay, drives the Chinese digital payments sector. As per industry insider records, Alipay manages approximately 56% of all digital payments in China, at the start of 2020.
Analysts believe that the DCEP will not hurt Alipay and WeChat Pay dominance as both firms had played an active part in the research and development of the “digital yuan” since 2014.