China’s «big four» state-owned banks – Bank of China, CCB, ICBC and the Agriculture Bank of China – have launched internal testing of what could become the world’s first sovereign digital currency.
The four banks, alongside the People’s Bank of China (PBoC), have piloted trials to use apps to register through mobile phone numbers, top-up accounts, withdraw money, make payments and transferrals, according to a media report by Guangzhou-based «21st Century Business Herald». The trial is even testing for the ability to make transferral between accounts without internet connection.
Some employees are already using the digital yuan to make transferrals and bill payments, the report added, with trials and planning taking place in major cities including Shenzhen, Suzhou, Xiongan and Chengdu.
Accelerated Launch
There are increasing signs that China is accelerating its efforts to launch the digital yuan.
Earlier this week, the PBoC said it would actively promote research and development of the digital yuan in the second half of the year. And last month, Chinese ride-hailing giant DiDi also said it had entered into a strategic partnership with the PBoC with regards to plans for the state digital currency.
G7 Response
G7 countries are also expected to promote cooperation on central banking digital currencies in the upcoming summit, postponed to September at the earliest.
The topic was reportedly proposed by the Japanese government, while supported by the U.S., in direct response to China’s own research and digital yuan due to the threat it poses to the dollar dominance.
