China Will Test Launch it's Digital Currency (DCEP) Using Real World Scenarios In Two Cities

China will soon launch its digital currency to be tested within two cities in the country. The People’s Bank of China (PBOC) which is its Central Bank will oversee the launch of this product they have been working on since 2014. According to a news report from Caijing, the project will pioneer in the cities of Suzhou and Shenzhen where the natives will test the (DCEP) electronic currency.

The report further highlights that PBOC has engaged 7 state backed corporations to assist on an implementation strategy. Three of the selected companies are telecom giants while the remaining four are commercial banks based in China. Ideally, there is a horse race on which corporation will come up with the best approach to roll out and integrate the digital currency with the existing financial ecosystems. Some banks in this portfolio have opted to outsource digital wallet services from telecom’s while the rest chose to build their wallet applications from scratch.

Initially, the project will focus on key industries like medical care, commerce, education and transport. It will be rolled out in two phases with massive promotions for adoption expected to kick off in 2020. The DCEP digital currency research and development has been under a FinTech company mandated by the PBOC; news reports have speculated that the firm will continue to support this project to actualization.

Basically, financial institutions will obtain the digital currency by making RMB reserve deposits with the PBOC. The Chinese population will in turn register for digital wallets with the accepted commercial banks to leverage the DC/EP digital currency. Reports from insiders in Chinese corporations indicate that the East superpower accelerated the project in the wake of Facebook’s Libra announcement.

China Issues Blockchain-Based Bonds

Just recently, China issued bonds on a private blockchain as part of its digital ledger exploration in the fourth industrial revolution (4IR). The PBOC issued the $2.75 billion worth of bonds to small businesses; this move is a significant statement about the country’s intention to further pursue blockchain adoption.

Speculations by FinTech stakeholders point to blockchain-oriented credit letters although it is a far-fetched thought. Based on these developments, PBOC is determined to stay ahead of projects like Libra and state backed digital currencies expected to launch soon.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Lujan Odera
Lujan Odera
Lujan is a blockchain technology and cryptocurrency author and editor. He has worked in the field of cryptocurrencies and blockchain technology since 2015 helping him gain enough experience to be the writer he is today. He is known for his simple writing style that allows novices to understand the field in the simplest way.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,471FansLike
2,795FollowersFollow
4,194FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitcoin to Follow the Equities Market Up or Down? One-Month Correlation Spikes to an All-Time High

Yet another week of weak price movement. The world’s leading digital asset is trading at $9,072, in red with 24 hours ‘real’ volume of just...

Public Mint Launches Its Blockchain; Over 200 Banks Plan to Support Its Digital Money

vPublic Mint, a firm founded by CNET founder Halsey Minor, has announced the launching of its ‘fiat-native’ public blockchain, which enables anyone to easily...

BTC Halving Week Brings in Record Monthly New Accounts & Doubles the Revenue for BlockFi

The past two months have been incredibly dull for the price of bitcoin, but it didn’t affect the businesses in the cryptocurrency space. The...

Currencycloud Partners with Ripple to Leverage RippleNet for Efficient Cross-Border Payments

Currencycloud - one of the global payment processing giants - has become the latest member of the RippleNet family and would help ripple in...

Coinbase Custody and IOHK Partner to Provide Institutional-Grade Staking For Cardano's ADA in Q4

IOHK, the lead developer of Cardano blockchain, and Coinbase Custody, the institutional-grade custodian launched by Coinbase Inc., announced a partnership to allow users to...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today