China continues to push for greater usage of the yuan via its national digital currency with plans for expanded trial across the country.
The Commerce of Ministry announced an expanded trial last Friday that includes China’s most developed regions as the country continues to pursue an accelerated launch of the digital yuan.
Further testing of the digital yuan will take place in northern China (including Beijing, Tianjin and Hebei province), the Yangtze River Delta region (including Shanghai) and the Greater Bay Area including Shenzhen, Macau and Hong Kong.
The latter two have existing de facto currencies, Macanese pataca and Hong Kong dollars, respectively.
2022 Winter Olympics
According to the ministry, testing will first kick off in Shenzhen, Chengdu, Suzhou, Xiong’an and 2022 Winter Olympics sites before extending to other regions.
Cities in central and western China could also undergo digital yuan trials if they meet certain conditions, the ministry added without providing specific details.
Sovereign Rush
The expanded trials follow reports that China’s «big four» state-owned banks – Bank of China, CCB, ICBC and the Agriculture Bank of China – have launched internal testing. Trials include phone number-based registration via apps; cash withdrawal, transferals and payments; and transferrals between accounts without internet connection.
China is not alone in sovereign efforts to launch a digital currency with the Japanese government reportedly proposing greater cooperation by G7 countries on central banking digital currencies in direct response to the development of the digital yuan.
