China to Pilot Digital Yuan With Four Banks in Two Cities – Report – Cryptonews

Shenzhen. Source: iStock/Nikada

Chinas central bank, the Peoples Bank of China (PBoC) is preparing to test the digital yuan in Suzhou and Shenzhen, with a pilot launch now imminent, per a new report.

Media outlet Caijing Magazine says it has learned details about the pilot project, which it says is being jointly led by the PBoC, as well as the so-called Chinese big four state-owned commercial banks, namely the Industrial and Commercial Bank of China, the Agricultural Bank of China, the Bank of China and the China Construction Bank.

Chinas three largest telecoms providers are also set to take part in the pilot with the state-owned China Mobile, China Telecom and China Unicom all named in the report.

Caijing adds that the PBoC could seek to increase the scope of its pilots, with other, as yet unnamed mainland locations being considered.

The PBoC has previously spoken about the possibility of conducting pilots before issuing a nationwide rollout, and has stated that it is aiming to introduce the digital yuan gradually.

The same media outlet also quotes an unnamed senior technical expert as stating that the PBoC has been working on a range of issues, but there is still a long way to go on the technical front before a rollout can be approved.

And the reports authors believe that the project will make use of cloud-based technology and possibly 5G networks two of Huaweis core business areas. The Chinese tech giant has been repeatedly mentioned as a possible digital yuan partner for the PBoC, with Caijing also stating that the company may well lend its support.

As previously reported, Shenzhen has shown a great willingness to build up its blockchain sector. A state-owned PBoC subsidiary company went on a recruiting drive in summer this year.

And Caijing says a central bank-owned fintech company based in Suzhou has been rushing to recruit blockchain talent of late. The companys official remit is conducting digital currency and cryptography-related research.

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China to Pilot Digital Yuan With Four Banks in Two Cities - Report - Cryptonews