China is planning on expanding its digital yuan testing this year, with Beijing and Shanghai leading a list of major cities set to participate. The accelerated testing phase comes after a successful year for the state-backed digital currency in which it was used in most major cities. One of the cities leading this testing phase is the capital, Beijing. As per a Chinese English language outlet Global Times report, Beijing Mayor Chen Jining will lead the initiative.
“The city will accelerate the building of innovative demonstration zones for fintech.”
Beijing Mayor said recently that the city would accelerate “the building of innovative demonstration zones for fintech and professional services in 2021.” One of the ways it will achieve this will be through the integration of the digital yuan. Beijing has been one of China’s most blockchain-friendly cities. In Shanghai, Mayor Gong Zheng has made a similar pledge. Zheng vowed to continue setting up the infrastructure that will allow residents to integrate the CBDC fully. Several other cities have also conducted digital yuan trials so far.
Guangdong will be leading the digital yuan adoption this year.
In Southern China, Guangdong will be leading the digital currency electronic payment (DC/EP) adoption this year. Governor Ma Xingrui stated recently that his government would promote the adoption of the digital yuan. Xingrui will especially focus on Shenzhen, a city that was among the first to embrace the CBDC. In October 2020, Shenzhen conducted a pilot program in which $1.5 million was distributed to 50,000 lottery winners earlier. Upon receiving the money, the residents conducted 62,788 transactions in which they spent around $1.3 million in digital yuan. According to one industry expert, these digital pilot tests are just a starting point, and it would change the financial landscape of China.