Major Chinese cities announce testing of Central Bank Digital Currency

Chinese Central Bank Digital Currency (CBDC) will soon be tested in ‘Guangdong-Hong Kong-Macao Greater Bay Area, Beijing-Tianjin-Hebei region, and Yangtze River Delta region’ according to China’s Ministry of Commerce.

So far, the digital yuan is already under trial in four cities: Xiongan New Area in North China’s Hebei province, Shenzhen in South China’s Guangdong province, Suzhou in East China’s Jiangsu province, and Chengdu in Southwest China’s Sichuan province. Furthermore, it will also be tested during the 2022 Winter Olympics games in Beijing, and be expanded to other regions as appropriate, the ministry added.

China’s four major state-run commercial banks have also started large-scale internal testing of a digital wallet app, where users can top up accounts, withdraw money, make payments, and transfer money after registering with their mobile phone number. Bank of China, China Construction Bank, Industrial and Commercial Bank of China, and Agricultural Bank of China are piloting the digital renminbi with the central bank in major cities, including Shenzhen.

The banks are also testing a scenario where users can transfer money without internet.