The advantages of eCNY, such as no fees and offline usage in addition to being the actual means of settlement rather than commercial bank money, could seriously challenge local payment service providers in the medium term. At the Boao Forum this year, PBOC Deputy Governor Li Bo said China is trying to make eCNY available not only to domestic users, but also international users such as visitors at the Winter Olympics. In October 2020, the on-the-ground tests became public for the first time and were expanded to another six cities in China.Īlthough the official timetable of launching eCNY has not been released yet, it is expected that a wider launch to the public might take place at the 2022 Winter Olympics. The Peoples Bank of China (PBOC) has been working on its sovereign digital currency programme since 2014, and it was not until August 2020 when it launched pilot trials to a selected group of China Construction Bank account holders for retail payment in four cities including Shenzhen, Suzhou, Xiongan New Area, and Chengdu. ![]() In May 2021, Zhejiang E-Commerce Bank (MYBank), an Alibaba-backed online lender, became the first private bank to join the eCNY tests. Officially called Digital Currency Electronic Payment (DCEP), or more commonly referred to the digital yuan or eCNY, China’s digital yuan is a form of central bank digital currency (CBDC) issued by the PBOC that will be distributed to the public by the six largest state-owned commercial banks in China. Out of which, China and Sweden are among the first major economies to pilot a digital currency. ![]() According to the Atlantic Council’s CBDC tracker, most economies are still in the stage of exploring the use cases, impact, and feasibility of CBDC, while 20 plus countries initiated small-scale testing of CBDC with a limited number of participants.
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