Shenzhen. Source: iStock\/Nikada<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Caijing adds that the PBoC could seek to increase the scope of its pilots, with other, as yet unnamed mainland locations being considered.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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