China’s Digital Currency Electronic Payment Project has Launched the Biggest Digital Yuan Test

China expands the initiative of DCEP to Chengdu, making the future of WeChat Pay and Alipay brightened. This trial is foreseen as the biggest trial in the digital yuan testing phase.

Liu Xiaochun told Caijing, the Beijing magazine, that the Chinese Bank is confidently issuing the digital yuan. This is due to its positive outcomes from several cities.

China is launching its first-ever fully adapted central bank digital currency (CBDC). The government of China has given out the digital yuan as a test. Authorities are encouraging people and retailers to accept it as a payment method.

Six Trials

There had been six trials before the Chengdu one, with the distribution of almost 120 million digital yuan. An additional 40 million digital yuan is allocated for the Chengdu trial to conclude on the 19th of March. Analysts believe that one day digital yuan could dominate over the US dollar in international trade.

According to iResearch, Alipay and WeChat Pay are contributing to 94 percent of the yuan market. China is turning into to cashless society with its first-generation digital payment methods introduced by Alipay and WeChat pay. These simple payment methods are evolving as the customers are attracted towards loans, investments, and assets management.

China’s central bank has cast a light on the rising concern about the competition between digital yuan and Alipay and WeChat Pay. And interpreted that there is no direct competition between the two, people will be able to use these both as there are both of different dimensions. Digital yuan will serve as the money in the wallets, whereas Alipay and WeChat Pay are the wallets for your currency.

While unveiling its yearly plans, China’s Blockchain Service Network (BSN) stated that within the period of five years, they intend to build a UDPN- Universal Digital Payment Method. The former governor of the People’s Bank of China said that DCEP has 2 tier operating system in a recent event. In the first one, commercials banks will convert some of their currency into digital currency. Secondly, this digital currency will be distributed to consumers. 

Li Lihui said at the Financial Annual Conference that it depends on the market choice to make DCEP a global digital currency or a replacement of Alipay or WeChat Pay.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

Venezuelan International Airport Has Started To Accept Bitcoin Payments

The adoption of decentralization continues to proceed at a steady pace, and more and more countries are taking the initiative of accepting DeFi in either a legal or private approach. Recently Venezuela airport has announced to start accepting BTC payments from the passengers. This is done in a private capacity and not the state of […]

Edward Snowden: CBDC Is Not A True Cryptocurrency

There was a time when investors, traders, or even the simplest of businessmen used to do their business in gold. At the time, it was the only acceptable mode of payment on a global scale. Then the mean of economic development rolled, and we were using coins made of bronze and aluminium to preserve gold […]

Brazilian Authorities Want To Legalize Bitcoin

A breath of fresh air comes from Brazil as it makes transitions to engage with crypto-oriented payments in the next few months. According to the Brazilian federal deputy, the whole project is in motion, and there will be an outcome soon enough. On a hilarious note, he said that people would be able to buy […]

New Feature Allows Private Ethereum Transactions

When it comes to mentioning the most elegant blockchain or digital infrastructure regarding cryptocurrency, it is without a doubt that Ethereum blockchain is definitely going to get nominated for that. It is hands down the best crypto blockchain there is, which ensures complete security and efficient transfer of protocols from one network to another in […]