According to local news reports, the People’s Bank of China (PBoC) is partnering with four state-owned commercial banks and three telecom giants to test the digital currency in Shenzhen and Suzhou. China is set to become the first country to launch a national digital currency.
State-owned companies to come up with implementation strategies.
According to the report, the central bank has asked state-owned commercial banks and digital companies to come up with the strategies to implement the digital currency electronic payment (DCEP). The pilot program that will be tested in the two cities will focus on industries such as transportation, education, commerce, and medical care. However, the exact date of when the cryptocurrency will be made available to the public is not revealed.
PBoC will carry out the pilot project in two phases
The pilot project to test digital currency in Shenzhen will be carried out in two phases. The digital currency will be tested on a small-scale at the end of this year and then widely promoted in the city next year. PBoC has been working on the national digital currency since 2014, but recently it accelerated the process to launch the DCEP.
China is not the only country that wants to issue a national digital currency. In order to stop the use of decentralized cryptocurrencies, several central banks are planning to launch centralized national digital currencies. Earlier, the central bank of China had announced a crack down on crypto businesses in the country.