Pilot Test for Digital Yuan with Wallet App to Launch in Four Chinese Cities

UTC by Muhaimin Olowoporoku · 2 min read
Pilot Test for Digital Yuan with Wallet App to Launch in Four Chinese Cities
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The digital yuan app would be available for download in Shenzhen, Chengdu, Suzhou, and Xiongan when the test begins.

The pilot test for China’s digital yuan is expected to begin soon or perhaps has started. This comes after screenshots of what the digital wallet is expected to look like leaked on social media on Tuesday.

The screenshots were circulated online by Ling Zhang, executive director of M&A, Global Fiat, and cryptocurrency exchange Binance via Twitter, as Changpeng Zhao, Binance CEO also retweeted the screenshots afterward.

Cities Digital Yuan Is to Be Tested

The digital yuan would be available for download in Shenzhen, Chengdu, Suzhou, and Xiongan when the test begins, according to Ling Zhang.

Xiongan’s participation in the test, however, is highlighted by Zhang as the new metropolis located in the outskirt of Beijing is described as a “smart city brain project .”

Xiongan is being prioritized for the launch because the area will host state-of-the-art intelligent infrastructure for satellite information gathering, big data storage, supercomputers, recognition sensors, and a 5G network. Xiongan has also caught the attention of stakeholder firms in tech industries like Alibaba, Baidu, Tencent, among others.

Currency Test for Workers Subsidy Scheme in Suzhou

The recent report about the Digital Yuan test states that the currency’s implementation in Suzhou is as part of a subsidy scheme for local government and enterprise workers.

Other reports have it that Alipay contributed to the research and development of the country’s hardware, distribution, and payment channel technology.

Agencies and enterprises in Suzhou are to pay 50% of local workers’ transport subsidy in the new digital currency. They are also being requested to sign a digital currency distribution agreement. This agreement includes relevant wages with distribution banks and install digital wallets for all their workers.

The Industrial and Commercial Bank of China, the Agricultural Bank of China and Construction Bank are also among those to be involved in the Suzhou scheme.

China’s Thirst to Deliver CBDC

China, before now, has been at the forefront of the race to launch a CBDC. It continued to keep up with developing it’s digital yuan regardless of the coronavirus crisis. Last month, the country’s central bank was said to have completed the development of the currency’s basic function and working on drafting its implementation already.

China’s President Xi Jinping also has shown a lot of interest in the digital yuan project visiting the project epicenter on several occasions.

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Muhaimin Olowoporoku
Author: Muhaimin Olowoporoku

Muhaimin is a journalist, a fintech and crypto enthusiast who is passionate about its development in Africa and across the globe. Muhaimin derives pleasure in reporting and analysing happenings in the crypto world and a believer in Blockchain technology.

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