China's Digital Currency Undergoes Internal Testing: Central Bank
Source: Global Times Published: 2020/9/24
The development of digital currency in China has achieved initial results and is undergoing internal testing, said a Chinese central bank official on Thursday.
Fan Yifei, deputy governor of the People's Bank of China (PBC), the country's central bank, said on Thursday during a payment and settlement forum that digital currency is an important part of the financial supply-side structural reform.
"It is the digitalization of M0, or cash in circulation, by using new technologies, aiming to provide a universal technical currency for the development of digital economy. The digital currency in China is undergoing internal testing," said Fan.
In terms of digital payment services, Fan also proposed to actively encourage the use of scientific and technological means to facilitate the application of electronic certificates and electronic signatures for enterprises to open accounts.
"The internal testing is mainly to test the technical reliability and maturity of the digital currency. The internal test requires that the digital currency should only run within a very clear boundary, which is quite demanding for the test scenario," Chen Bo, Director of Digital Finance Research Center at the Central University of Finance and Economics, told the Global Times on Thursday.
The central bank is cautious in testing, as it limited the scope to internal tests. Only when the volume of transactions reaches a certain level can the central bank go for external testing, Chen noted.
As a derivative of digital currency, digital bank cards have been another focus of market institution.
In August, China UnionPay and related institutions released the first "digital bank card", realizing the whole process of digital application and fast card acquisition, providing comprehensive and convenient digital financial services for cardholders.
Shares of digital currency surged during the morning trading session on the news. Stocks of Feitian Technologies Co rose more than 3 percent after opening lower.
The central bank's internal experimental test of digital currency has been up and running in Shenzhen in South China's Guangdong Province, Xiongan New Area and other places in China, Yi Gang, PBC governor, revealed in May. The digital currency will be used in pilot scenarios for the 2022 Winter Olympics in Beijing.
"It is unclear what scenarios the central bank will choose as the next test," said Chen.
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