China’s digital sovereign currency tests put it ahead of the global pack in push to adopt digital money
- People’s Bank of China started studying digital currency in 2014, but the pace picked up last year after Facebook omitted the yuan from a basket of currencies in its Libra project
- European Central Bank warns of foreign providers taking the lead in digital currencies, while starting to examine the pros and cons of its own unit
China’s central bank is moving closer to a full roll-out of its sovereign digital currency, with tests having already been conducted in pilot cities, though the formal launch date for the nation’s new digital money remains unknown.
Meanwhile, other major central banks are warming to the idea of digital currency, with the European Central Bank saying last week that it would begin exploring the pros and cons of pursuing its own. Sweden’s Riksbank has also been testing its e-krona for months.
But China is well ahead, having been testing its digital currency for most of the last year.
China’s Digital Currency Electronic Payment (DCEP) system is being tested in the economically significant cities of Suzhou, Chengdu, Xiongan and Shenzhen, as well as at future Winter Olympics venues, with an expanding list of participants.