Digital Yuan is expected to be before 2020, with banks that have piloted

The digital Yuan to go before the Launch of Facebook’s Libra into the race and the first digital Coin that is issued by a Central Bank, start. Previously it was known that the pilot program will initially be tested in two cities.

The People’s Bank of China (PBoC) to test the electronic payment system of digital currency (DC/EP) between the cities of Shenzhen and Suzhou, according to local Chinese media.

Seven government-friendly businesses will participate in the Tests. Including four commercial banks and three telecommunications giants such as the state-run China Mobile, China Telecom and China Unicom are involved. Kaijing declared that the Chinese Central Bank granted the company almost total discretion, and the competition between them promotes. One of the banks that allegedly participated in the Tests last week, has issued bonds on the Basis of the Blockchain technology. The Bank of China, one of the four largest banks in the country, has placed securities in the amount of $ 2.8 billion. The efforts aim to support the small and medium-sized companies in the area.

Earlier, the Deputy Director of the People’s Bank of China, Mu, Changchun said that Chinese companies will compete with each other for Power, the best tools on the basis of the digital currency to the Central Bank (CBDC) to provide. He compared the approach of the regulatory authority for horse racing – the leader of the race will almost occupy the entire market. Mu stressed that the PBOC is over all technologies are neutral, but the technical decisions of the leader are likely to be taken over by other actors.

The pilot program will focus on key industries such as transport, education, trade and medical services. Some of the programme participating companies intend to develop a SIM-card with built-in digital Wallets, while other software solutions are to develop. It is likely that it is in the first case, to state-owned telecommunications company.

In the media it is said that the pilot program will be launched in two phases. In the first Phase, which takes place at the end of 2019, you will perform a series of local Tests. The participants will, however, contribute in the year 2020, the comprehensive promotion of DC/EP. The Delta Fintech, a subsidiary of fintech company is for the development and implementation of the system.
The Central Bank of China will occur as the main Issuer of the digital Renminbi.

It is surprising that China is ready to release his CBDC, before Facebook’s Stablecoin Libra comes on the market. At the same time, commercial banks will act as distribution partner. As a payment systems Wechat and Alipay can be used. Perhaps the PBOC already has a ready-made technological solution, but the Chinese regulatory authority, says nothing about its Details and is silent continue in this area.

In the last two years, the Chinese authorities have banned ICOs and direct transactions with Bitcoins and refused to crypto-currencies as means of payment recognised. With the available information about the new Token, the Central Bank is not sure that it is a technological breakthrough, but the attempt of the state to be on the crypto currency market is an important player and the abolition of the cash to significantly scale up.

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