New reports indicate that China could be accelerating the launch of its central bank digital currency (CBDC). According to a recent report China is testing its CBDC on a designated mobile application. Another report claimed that some of the organizations behind the project, including AliPay, and Tencent, are already piloting an early version in the Xiongan New Area.
The digital Yuan could arrive sooner to counter potential US threats to local financial institutions and the yuan’s international settlement.
Digital Yuan may be rolled out sooner than expected
The central bank of China had also revealed that the digital yuan might be tested in scenarios for the 2022 Winter Olympic Games in Beijing.
However, the central bank has not announced the official date for the launch of national digital currency. The governor of PBoC said that these tests are routine work for the research and development (R&D) of the digital currency and that no schedule for an official launch has been revealed yet. The world is highly anticipating the digital version of yuan as it would be the first major country to launch its CBDC. Several economists and experts in the field have claimed that digital yuan could threaten the global dominance of the US dollar.