China to issue 10 million digital yuan in first public test

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China to issue 10 million digital yuan in first public test

In the latest flashpoint of Central banks’ attempts to fend off unconventional crypto trading which often involved a cover-up of illicit transactions or money laundering through blockchains that keep track of an amount exchanged between anonymous buyers and sellers in an encrypted form, the People’s Bank of China (China’s Central Bank) had issued a statement on Tuesday saying that it was going to issue about $1.5 million worth of digital Chinese Yuan to 50,000 randomly chosen consumers aimed at testing the feasibility of a digital Yuan payment system.

In point of fact, latest move from PBOC (People’s Bank of China) comes over the heels of an ECB decision to prepare for a digital euro as part of a rescue effort of the traditional currencies amid growing competitions from the privately issued cryptocurrencies, while the Swiss Central Bank had also been contemplating a pilot project that would involve a digital version of its Swiss Franc.

China to begin “red envelope” campaign as a test of digital yuan

Apart from that, the People’s Bank of China’s campaign was brought into the light months after the China’s Central Bank had clamped down crypto trading and mining in the metropolitan city of Beijing, while Central Bank policymakers of G7 nations met on last Friday to discuss about the potential measures which could be deployed to offset global-scale implementation of crypto currencies including the Facebook Inc.-backed crypto project “Libra”.

The People’s Bank of China had also added at its Tuesday’s statement that any individual indwelling the Chinese city of Shenzhen area would be able to apply for the digital Yuan through four large lenders from next Friday, while the project would allot a “red envelope” containing paperwork of 200 Digital Yuan to some 50,000 applicants via a lottery.

The Chinese citizens having been offered with a digital version of the Chinese Yuan, would be able to use the digital currencies in some 3,389 retail outlets in the Chinese city of Shenzhen including Sinopec gas stations and Walmart stores.