China’s digital currency takes shape as trials begin with travel subsidies and Communist Party fees
- Agency in charge of developing digital yuan confirms that pilot schemes for have been approved in four cities
- Trials come as Facebook-backed Libra was forced to scale back its ambitious plans
Trial programmes for China’s sovereign digital currency began last week as Libra, a cryptocurrency backed by Facebook, scaled back its ambitions to become a global currency.
The following day the National Business Daily reported that the Xiangcheng district of Suzhou was expected to put the currency to use in May by paying half the travel subsidies given to public sector workers in digital form.
The 21st Century Business Herald also reported that one unnamed state bank, which is testing the official digital currency, has allowed some of its Communist Party members to pay their membership fees.
The Digital Currency Research Institute of the People’s Bank of China, the agency that is in charge of digital currency development and testing, confirmed that it is conducting trial programmes via China’s state-owned banks.
It said pilot schemes for the digital currency would be held in four cities – Shenzhen, Suzhou, Xiongan and Chengdu. It also said 2022 Winter Olympic venues could also be used to test the currency.