Chinese Firms Collaborate With Chinese Central Bank to Launch Digital Yuan

[Mime]

The Chinese central bank - the People’s Bank of China (PBoC) - is making new partnerships with local companies to test its central bank digital currency, Digital Yuan.

Two weeks back, the Chinese central bank partnered with ride-hailing giant Didi to test the use of the Digital Yuan across Didi’s massive customer base. Taking it even further, the central bank has now partnered with 20 other local companies in an aggressive push for its Digital Yuan use.

For the testing of Digital Yuan, the PBoC has roped-in some of the state-owned Chinese banks as well as some of the giant telecom players like China Mobile, China Telecom, China Unicom, and Huawei.

As per the reports, all the participating banks have converted part of their deposits into digital currencies and is looking for sectors to push the use of Digital Yuan. Besides, the banks have also developed and tested all the wallet platforms required to store the digital currency.

For the initial real-world testing, the PBoC decided to pay the salaries of the state-employees in four cities - Chengdu, Shenzhen, Suzhou, and Xiong’an - in Digital Yuan.

A major aggressive push was when the PBoC partnered with Didi to test its Digital Currency Electronic Payment (DCEP). Didi Chuxing has over 550 million users across 440 cities that provides a sizeable sample to test the Digital Yuan.

PBoC’s another major partnership is with the Tencent-backed food delivery startup Meituan Dianping to test and trial the digital currency.

For the deployment process of the entire project, the PBoC has also collaborated with local tech giants like AliPay and WeChat. Both these companies have a strong footprint in the FinTech and the digital payments sector.

Additionally, PBoC is said to be in talks with some of the country’s biggest retail chains like Subway, McDonald’s, Starbucks, however, the details are not yet public. Additionally, PBoC is working out a partnership with video streaming app Bilibili which has a user-base of more than 170 million users.

Although China has been an early participant in the CBDC development, other big economies are taking similar route. UK’s Bank of England is working to test the introduction of CBDC in the country’s financial system. BoE governor Andrew Bailey said that in a few years “we will be heading toward some sort of digital currency”.

On the other hand, the U.S. is also warming up to the idea of digital currencies. Last week, the U.S. Regulator gave a green for national banks to provide cryptocurrency custodial services in the market. The lawmakers are also actively considering the prospects of having a Digital Dollar going ahead.

Source: https://www.worldcoinindex.com/news/20-more-chinese-firms-collaborate-with-the-chinese-central-bank-to-launch-digital-yuan

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[dudusix9]

This can be the future for real. I also saw Lithuania kinda trying to do the same thing. To celebrate their Act of Independence, the Bank of Lithuania, through LBCoin, is issuing 24,000 blockchain-based digital tokens and 4,000 physical silver collector coins. That's all using NEM's Symbol blockchain. People are now starting to realize the worth of crypto 

[Iyanu14]

Well, it's a good news actually.  We just want to hope it becomes reality because numerous similar news like this we have read and heard and at the end of the day, it remains at the level of the news.

[mersal]

Well, it's a good news actually.  We just want to hope it becomes reality because numerous similar news like this we have read and heard and at the end of the day, it remains at the level of the news.

Not really though, it was planned to destroy the decentralization we got from crypto currencies and most governments doesn't want us to get financial freedom and not interested in tracking the blockchains created from anonymous persons that is why governments creating their own CBDCs which may affect the banks as well.

[bigcash2011]

China is all set to lead the world in this advanced technology and they want to completely capitalize on the blockchain technology, cryptocurrencies and their own official digital currencies, I am impressed jow they have realized the future potential of this new tech and now they are looking to fully implement it practically, let us hope that other countries will also follow China otherwise they will left behind in this race.

[passwordnow]

The exposure that what China is doing for CBDC is also helping cryptocurrencies. They are giving the people an idea that cryptocurrencies should be like that and it's not a scam except those proven scam coins like Bitconnect and other of the same.
China is advancing and likely saw the potential for this being the first of the countries to apply cbdc. They can credit themselves for that and that can be part of history.

[qazgroup]

It will be interesting to see how all these digital currencies roll out.
Some other countries including some European countries are also developing their own digital currencies, it is just a matter of time when all countries will follow and come up with their own digital currencies because of numerous benefits especially related to efficiency, transparency and cheap cross border payments with tracking for each transaction.

[pilosopotasyo]

China is all set to lead the world in this advanced technology and they want to completely capitalize on the blockchain technology, cryptocurrencies and their own official digital currencies, I am impressed jow they have realized the future potential of this new tech and now they are looking to fully implement it practically, let us hope that other countries will also follow China otherwise they will left behind in this race.

Chinese companies are already leading the Cryptocurrency technology, and now that they are creating their own block chain or coin they have all the means, like the technology and the people to lead their own coin, we cannot ignore this coin it will have a space in the community because they have all the means to go up to the top.

[DoubleEdgeEX]

China has just a few big players, and those few are somehow controlled by the government. It´s easy when you have one group that tells you how to do it and don´t have a need to discuss it. The power of the one-party system why democracy isn´t always the best solution when it comes to progress. Te fact that everything is connected makes it easier to make the people adopt the new technology, even though I think the average Chinese won´t even recognize whats changed since he sends his Yuan over WeChat or AliPay apps already.

As a startuper, the following is also entertaining to me:
Random Startup - Lets get some beta testers, I think 100 are ok
China - Digital Yuan - Lets get some beta testers,  550 million users across 440 cities should be ok haha

[Shallow]

China keeps trying their best to leverage and maximize every potential in any technology deem fit, which they believe will help their course. Also, this is a good and welcoming news for the entire crypto space proving yet again that the future of blockchain and cryptocurrencies is bright. In addition to the news I read about PayPal and their target towards the crypto space, I can say vividly that everyone is trying not to be left out. And lastly, I hope these news will go beyond mere words and propagate to the main deal so that blockchain and crypto mass adoption will fully be in action.

[FanEagle]

What you should know about China is that, Chinese firms and Chinese bank and Chinese government are all tied to same person and same organization, they are not separate places.

So, when you are saying Chinese firms collaborate with Chinese central bank, you are saying CCP is collaborating with CCP because in reality at the head of everything there is a dictator who is declining and denying all the noises that are against him and kills everyone who wants to change anything, and when you have that much power you just go "tell our firms to work with our bank to make a digital money" and that's it, after that they have to do it, there is no other option.

Secondly the digital yuan will be under hardcore watching eye by the CCP as well and you will not be able to do much without being seen.

[fullhdpixel]

Well, it's a good news actually.  We just want to hope it becomes reality because numerous similar news like this we have read and heard and at the end of the day, it remains at the level of the news.

Not really though, it was planned to destroy the decentralization we got from crypto currencies and most governments doesn't want us to get financial freedom and not interested in tracking the blockchains created from anonymous persons that is why governments creating their own CBDCs which may affect the banks as well.

Decentralization is convenient for the users but is it convenient for the government? The answer is no because the whole payment system and economy of the country cannot be relied upon a decentralized platform. Tracing of illegal activities, scams, frauds and black money would be impossible if that is put into action.

People will deny to pay the taxes and the country will begin to collapse in various ways. Government is interested in the blockchain technology and not decentralization. Therefore, they are creating their own centralized digital currencies powered by blockchain to meet the required expectations and get a step closer to digitalization.

[CarnagexD]

Well, it's a good news actually.  We just want to hope it becomes reality because numerous similar news like this we have read and heard and at the end of the day, it remains at the level of the news.

Not really though, it was planned to destroy the decentralization we got from crypto currencies and most governments doesn't want us to get financial freedom and not interested in tracking the blockchains created from anonymous persons that is why governments creating their own CBDCs which may affect the banks as well.

Decentralization is convenient for the users but is it convenient for the government? The answer is no because the whole payment system and economy of the country cannot be relied upon a decentralized platform. Tracing of illegal activities, scams, frauds and black money would be impossible if that is put into action.

This isn't the question at all, why would a centralized one believe that the betterment of the society is through their opposite? The very question on CBDCs are the effectiveness for its people to utilize its efficiency, if not then they will probably shut it down and continue living with the fiat money, but as I see the development of CBDCs and Defi right now, I see the potential of the use in future situation especially now that we already had a pandemic, this might be a good course for every one.

People will deny to pay the taxes and the country will begin to collapse in various ways. Government is interested in the blockchain technology and not decentralization. Therefore, they are creating their own centralized digital currencies powered by blockchain to meet the required expectations and get a step closer to digitalization.

Digitalization is what we need for convenient, this is what a progressive society should have, we have been walking over the fiat for a very long time and we need a transition using our very own technologies.

[Pasutinmeur]

Well, it's a good news actually.  We just want to hope it becomes reality because numerous similar news like this we have read and heard and at the end of the day, it remains at the level of the news.

That doesn't seem to be good news at all. Remember china has already started to issue its own digital currency and that means it will not consider crypto as a choice to be used in china. The good news when crypto has a chance to create a bridge with it.

[Bonwin]

Well, it's a good news actually.  We just want to hope it becomes reality because numerous similar news like this we have read and heard and at the end of the day, it remains at the level of the news.

That doesn't seem to be good news at all. Remember china has already started to issue its own digital currency and that means it will not consider crypto as a choice to be used in china. The good news when crypto has a chance to create a bridge with it.

Will there ever be such a chance? Well, maybe in other countries or parts of the world, but for China, the Chinese might seriously want to go against it, because it will definitely overshadow theirs. So, they will try all means possible, to ensure that their own digital currency remain relevant and more important than any other.

[bgaf]

That doesn't seem to be good news at all. Remember china has already started to issue its own digital currency and that means it will not consider crypto as a choice to be used in china. The good news when crypto has a chance to create a bridge with it.

Why not? The one they will issued is also a digital currency and they had supported many blockchain as of now it supported 6 blockchains and they arr planning to add 100 more. They will used their own of course but it does not mean they can restrict other users in their country to be able to buy, sell and trade, other cryptocurrency product. They are just going to recommend their own but nothing will change as it is. Only the fact that many chinese will be gaining more idea since their country favor the blockchain integration.

[Tipstar]

That doesn't seem to be good news at all. Remember china has already started to issue its own digital currency and that means it will not consider crypto as a choice to be used in china. The good news when crypto has a chance to create a bridge with it.

Why not? The one they will issued is also a digital currency and they had supported many blockchain as of now it supported 6 blockchains and they arr planning to add 100 more. They will used their own of course but it does not mean they can restrict other users in their country to be able to buy, sell and trade, other cryptocurrency product. They are just going to recommend their own but nothing will change as it is. Only the fact that many chinese will be gaining more idea since their country favor the blockchain integration.

Though it may be an opposite path to crypto as imagined by satoshi but it would be a step forward for blockchain development and a leap for adoption. The development part would be more positive as other project could learn from the use and operation of digital yuan. The adoption section may discourage users to go towards traditional crypto but their approach would be worth learning even for open source projects.

[tbterryboy]

China has always been one step ahead be it the infrastructure, technology, production market or anything. It was the nation where most of the bitcoin mining took place at one time (even today it stands strong). China has termed bitcoin and other cryptos as “virtual goods” which in any case should not be used as currency and has no legal status.

Hence, it has launched its own digital currency of the central bank in accordance with the people’s bank of china (PBoc). China being a tech giant will soon take a major step towards complete digitalization before any other country does.