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Yuan digital tests are limited to retail stores

August 24, 2020

The People’s Bank of China (PBoC) announced that the lawsuit against their CBDC is currently limited to small retail stores.

according to Global times On August 24th, the central bank clarified some details about its latest digital yuan, also known as electronic payment in digital currency or DCEPto counter rumors about the size and scope of the recent pilots.

According to the message, Some Chinese internet users claimed that a person in Shenzhen received a large amount of digital currency from the PBoC after selling local real estate. Wang Peng, an associate professor in Renmin University’s School of Artificial Intelligence Gaoling, said:

“At this stage, the main objective of this test is to ensure that the digital currency is operating smoothly and securely, and to determine how the DCEP will be distributed by the central bank to financial institutions. Only if the tests are in A Successful Retail large transaction scenarios take place. “

Yuan digital tests are limited to retail storesYuan digital tests are limited to retail stores

It was rumored that the digital yuan could not be converted into banknotes.

A PBoC employee responded with it Digital currency is legal tender in China and can be converted into banknotes at a 1: 1 ratio.

As Cointelegraph recently reported, the DCEP studies have been extended to Beijing and Tianjin and Hebei provinces.

It was previously known that the tests would take place in Greater Hong Kong Bay, a major city made up of nine cities including Guangzhou, Shenzhen, and Hong Kong and Macau. It is also known that China has been conducting in-house tests by state banks on an industrial scale digital wallet specially designed for its CBDC.

While the adoption of China’s digital currency seems very close, there are many details about its features and limitations that are not yet known to the public. As a specific analysis by Cointelegraph shows, many questions about the privacy, scope and usefulness of the DCEP remain.

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