{"id":20737,"date":"2019-12-09T22:31:54","date_gmt":"2019-12-09T21:31:54","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=20737"},"modified":"2019-12-09T22:31:54","modified_gmt":"2019-12-09T21:31:54","slug":"china-to-test-it-central-bank-digital-currency-in-the-cities-of-shenzhen-and-suzhou","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/china-to-test-it-central-bank-digital-currency-in-the-cities-of-shenzhen-and-suzhou\/","title":{"rendered":"China To Test it Central Bank Digital Currency in The Cities of Shenzhen and Suzhou"},"content":{"rendered":"
China is going to lead the way in issuing central bank digital currency (CBDC) as according to the<\/span> publication<\/span><\/a><\/strong> of Chinese financial news outlet Caijing on December 9, the People\u2019s Bank of China (PBOC), the central bank of the country, has announced that it is going to test its much-talked digital currency and electronic payment system in two cities of the country that include Shenzhen and Suzhou.<\/span><\/p>\n According to news reports, the central bank of China will test it digital currency electronic payment (DCEP) infrastructure in collaboration with seven state-owned companies. They include four commercial banks and three telecom firms including Huawei.<\/span><\/p>\n The Caijing report says that <\/span>BOC<\/span><\/a><\/strong> has launched a horse race among these four commercial banks to encourage them to come up with their implementation strategies fast.<\/span><\/p>\n According to the Caijing report, in the city of Shenzhen, digital currency electronic payment (DCEP) test will be carried out in two phases. At first, a small-scale testing will be done in the last days of this year and then, after analysing the results, DCEP will be promoted in the entire city of Shenzhen in 2020.<\/span><\/p>\n <\/p>\n Meanwhile, Suzhou is the city in which new developed central bank digital currency (CBDC) will also be tested. The plan to test CBDC in Suzhou was already there as according to a<\/span> report<\/span><\/a><\/strong> in November, the Yangtze River Delta Financial Technology Co., Ltd., a fintech company established by the Central Bank Digital Currency Research Institute and relevant units in Suzhou City, was given the task to recruit blockchain talent. <\/span><\/p>\n These recruitment positions include<\/span> data centre managers, security and password research specialists, senior network engineers, blockchain technology directors, blockchain architects, and blockchain R&D engineers, and big data R&D engineers, said the report.<\/span><\/p>\n According to the reports, some commercial banks are collaborating with telecom companies to develop built-in digital wallet SIM cards, while others their own digital wallets. The banks will buy digital currency,<\/span> pegged 1:1 to China\u2019s national currency, the Chinese Renminbi (RMB), from the central bank. Users then can use this national digital currency with registering themselves with the bank\u2019s wallet.<\/span><\/p>\n