The PBoC [People’s Bank of China] has revealed that the test launch of its upcoming CBDC is presently limited to small retail transactions.
In line with the Global Times on 24th Aug., the central bank has clarified some details regarding the recent digital yuan – also referred to as digital currency electronic payment, or DCEP – so as to deal with rumors regarding the size and scope of recent pilot projects.
According tp the report, some Chinese internet users claimed that an individual in Shenzhen received a large amount of PBoC’s digital currency after selling local estate. Wang Peng, an professor of the Gaoling School of AI at Renmin University added:
“At its early stage, the test’s primary goal is to make sure the digital currency’s operation runs smoothly and safe, and to work out how DCEP is distributed from the central bank to financial institutions. Solely the trials in retailing are successful will they be administered in large transaction scenarios,”
While some other rumors also revealed that the digital yuan couldn’t be converted into banknotes.
A PBoC employee answered by stating that the digital currency is tender in China and may be converted into banknotes at a rate of 1:1.
As reported earlier, DCEP trials were expanded to incorporate Beijing, along with Tianjin and Hebei provinces.
Previously, it had been known that the tests would be conducted in Hong Kong’s Greater Bay Area – a megapolis consisting of nine cities along with Guangzhou, Shenzhen, as well as Hong Kong and Macau. It’s also widely known that China had been conducting industrial-scale internal testing by state-owned banks of a virtual currency wallet designed especially for its CBDC.
While the launch of China’s virtual currency seems to be particularly close, there are many details concerning its features and limitations that aren’t yet known to the general public.