China Plans To Test Its Digital Currency with Banks And Telecom Companies
The People’s Bank Of China(PBoC) is the central bank of the People’s Republic of China responsible for carrying out monetary policy and regulation of financial institutions in China.
The Central Bank OF China popularly called The People’s Bank Of China(PBoC) is on the move to test its digital currency called Digital Currency Electronic Payment (DCEP), later this year 2019, starting with commercial banks and telecommunications companies.
By a report published by Caijing, the central bank is ready to test the digital yuan in the cities of Shenzhen and Suzhou with the help of the Bank of China, the China Construction Bank, the Agricultural Bank of China, and the Industrial and Commercial Bank of China.
The digital currency’s tests will also include three telecommunications firms China Telecom, China Mobile, and China Unicom. During the test the DCEP will be applied in real-world scenarios such as transportation, healthcare, and education.
The test will be made up of two pilot phases, the first of which will take place before the end of this year 2019. The second one is likely going to be a large-scale effort in Shenzhen, and if it works out well, the DCEP could live after that.
The People’s Bank of China is fast-tracking the development of its digital currency in view of the Facebook-led Libra cryptocurrency’s announcement.