China conducts one of the biggest public CBDC tests!

[exstasie]

What exactly will the CBDC mean for China, how much and how will it affect their economy, will it be accepted by some other countries close to China, and whether it will weaken interest in Bitcoin, which has been banned from trading for years.

I don't think CBDCs are as much of a game changer as people think. The rollout will be gradual, and the primary changes: more efficient government payments to citizens (including stimulus if necessary) and more efficient tracking and tax enforcement of citizens. I don't see why it should have that major of an effect on their economy.

The only businesses or states who will accept their CBDC are those who are okay with exposure to CNY in the first place.

As for Bitcoin, I don't see it having much effect at all. Chinese people know understand well enough that some state issued CNY-pegged currency is no replacement for speculative cryptocurrencies like BTC.

[wack slacker]

Despite the criticisms we hear about China (mostly from the USA), there is no denying that in some respects they have moved far away from most of the more advanced countries in the world. A few days ago, a crypto lottery ended in which 10 million yuan (CBDC) was distributed, which is approximately the value of $1.5 million. 2 million people applied, and 50 000 were given the opportunity to get CBDC that they will be able to spend on 3000 merchants located in Shenzhen province.

It should be emphasized that this is only one of the steps preceded by several tests, but that this is the largest test so far and perhaps even the one after which the digital yuan will begin to be used across the country.

They have a population of 1.4 billion people, and careful preparation before launching a digital currency is essential. Shenzhen is a high special economic zone, it is compared to Silicon Valley of America so it is the best place to test this coin.
The free distribution of digital currency to the public is also a way to advertise its technological value.

What exactly will the CBDC mean for China, how much and how will it affect their economy, will it be accepted by some other countries close to China, and whether it will weaken interest in Bitcoin, which has been banned from trading for years.

The CBDC was created to prevent the influence of other currencies on the yuan. CBDC is backed by RMB so it has real value. CBDC helps users to transfer money more quickly and continuously, minimizing complicated confirmation from the old banking system. People can transfer money anytime, anywhere without any congestion.
China's foresight competes with the dollar globally by paying with its digital currency.

[Ozero]

will it be accepted by some other countries close to China

I don't think that any country would be happy to accept their CBDC. China alone is a huge country to use this as a new type of money. As we know, many countries don't really like them and there are a lot of shadowing through international media about them. With shadowing, I mean those news about them being portrated as a bad country and while praising their economy to be going up, it just so happened because the world is in crisis.

A few days ago, China signed an agreement with 14 countries in the Asia-Pacific region to create a common free trade zone.  I think it is no coincidence that this happened on the eve of the official launch of the Chinese digital yuan.  This stablecoin is almost ready for circulation, the legal basis for this is now being prepared.  The digitized yuan will have a great impact on both this region and all world currencies in general.

[lixer]

I don’t see why we should be applauding them in this forum. CBDC doesn’t benefit it us in this community in any way, it doesn’t at all, so it’s of no need applauding what they are doing. They are creating their own cryptocurrency which is only going to work in their country, if you’re not in China you’re probably not going to experience.

I have heard few news on how they are trying to be tightening up everywhere and make things difficult for miners in China so that miners won’t be able to continue their bitcoin mining business there. Some have reported dumping their miners already. China doesn’t support Bitcoin.

[bittick]

If this CBDC truly uses blockchain implementation within their system then we might see the real test regarding the versatility, scalability and performance of what blockchain could be capable of. Although it's centralized and doesn't even resemble bitcoin or any other decentralized crypto at all but it's a good thing that some government really trying to find out the aftermath of blockchain implementation within big and enormous scale of users like this.