The Guardian (UK): China launches a large-scale experiment with the state of digital currency

Next week China will launch a trial payment in the new digital currency in four major cities, local media reported.

In recent months China’s Central Bank rapidly develops e-the yuan — it will become the first national digital currency in the larger economy.

According to reports, the experiment has already begun in several cities, including Shenzhen, Suzhou and Chengdu, as well as in the new district South of the capital, Sunyani, and places where events of the winter Olympics in Beijing in 2022.

According to the state newspaper “China daily” (China Daily), the digital currency was introduced to the payment system of cities, and a number of officials and public servants and will receive her salary since may.

It is reported that in Suzhou digital currency will be used to pay for transport while in Sunyani the focus will be on food and retail trade.

The alleged screenshot of the app to store and use digital currency walks on the network since mid-April.

According to some reports, to participate in the experiment agreed a number of companies, allegedly including McDonald’s and Starbucks, but Starbucks has denied this information. Response from the “McDonald’s” has not yet been reported.

Platform for digital payments are already widespread in China, for example, Alipay (for which there is Ant Financial, a subsidiary of Alibaba) and WeChat Pay (owned by Tencent) — but existing currency they do not replace.

As stated by the Professor of National research Institute of development of Peking University Xu yuan in an interview with broadcaster CCTV, due to the fact that the cash transactions are not recorded in digital form, and data transfer with existing payment platforms is fragmented, the Central Bank could not control the cash flows in real time.

“Although for consumers the changes are minor, for Central Bank — from the point of view of supervision, future forms of financing, payments, business, and social management and so on — this is the greatest leap in history”, he said.

17 APR research Institute of digital currency in the people’s Bank of China is he developing a new system — said that work on digital yuan “is moving steadily forward.” According to CCTV, design, function research and development upper level and the debug completed.

Reportedly, the development of Chinese digital currency has accelerated the announcement of “Facebook” plans to launch her in June.

Sovereign digital currency tied to national, has been under development for several years, and in August the Bank stated that it was “almost ready”. However, in the next month, the Bank And Ghana said that the graphics of launch yet.

“Sovereign digital currency is an effective alternative to the system of payment in dollars. It dulls the impact of any sanctions and softens the threat of a boycott at the national level and at the level of individual companies,” said the “China daily” last week.

“In addition, it can facilitate the integration in the global currency markets and to reduce the risks of political disturbances.”

It is expected that the use of cash will continue to decline amid the growing popularity of digital platforms and the desire to reduce physical contact during a pandemic coronavirus to a minimum.

In writing the article was attended by Lillian Yang