The People’s Bank of China (PBoC) announced that the test run of its central bank’s digital currency is currently limited to small retail transactions.
According to the Global Times on August 24, the central bank has provided some details regarding the recent digital yuan – also known as electronic payment of digital currency, as DCEP – to address rumors regarding the scope and scope of recent pilot projects.
According to a report, some Chinese internet users reported that a person in Shenzhen received a large amount of the digital currency from PBoC after selling local real estate. Wang Peng, an assistant professor at the Gaoling School of Artificial Intelligence at Renmin University, said:
“At present, the primary objective of the test is to ensure that the operation of the digital currency runs smoothly and securely, and to determine how DCEP is distributed from the central bank to financial institutions. Only if if trials in retailing are successful, they will be executed in large transaction scenarios, “
The rumors also stated that the digital yuan could not be converted into banknotes.
A PBoC employee responded by stating that the digital currency is legal in China and can be converted into banknotes at a 1: 1 rate.
As Cointelegraph recently reported, DCEP trials were extended to Beijing, as were Tianjin and Hebei provinces.
Earlier it was announced that the tests would be conducted in the Greater Bay Area of Hong Kong – a megapolis consisting of nine cities including Guangzhou, Shenzhen, as well as Hong Kong and Macau. It is also well known that China had conducted internal industrial-scale tests by state banks of a digital currency exchange, specially designed for its CBDC.
While the launch of China’s digital currency in particular seems to be under way, there are many details regarding its features and limitations that are not yet known to the public. As Cointelegraph illustrates widely analyzed, many questions remain unanswered about the privacy, scope, and usefulness of DCEP.
