China has made enormous progress on the digital Yuan and is testing its use on a fairly large scale. It has recently started testing Digital Currency Electronic Payment [DCEP] in Beijing and Shanghai with the aim of promoting the digital currency before its launch, as authorities anticipate in the "near future". Beijing announced that it is exporting 10 million digital yuan to include more people.
This will allow users to experience the use of the digital asset, while also encouraging their consumption during the upcoming Spring Festival. To keep things interesting, China will publish these digital assets in virtual "red envelopes." A total of 50,000 digital red packages, each containing 200 yuan each, will be distributed to Beijing residents from February 10, according to a statement posted on the official WeChat account of the local financial regulator.
Those selected will be able to use the digital currency in selected online and physical stores until February 17. There will be at least 100 designated physical stores in the Wangfujing commercial environment or through the online e-commerce platform JD site.
Digital yuan will take the stage at the Winter Olympics.
Beijing is just over 365 days before the 2022 Winter Olympics countdown and is therefore called the "digital Wangfujing, ice and snow shopping festival" for the trial. The aim was to promote the use of the digital yuan in winter sports and the 2022 Olympic Games.
Similarly, China's central bank's digital currency research institute and clearinghouse entered into a joint venture with SWIFT, a global system for financial messaging and cross-border payments. In a statement to Reuters, SWIFT noted that four other payment market participants and infrastructure providers have set up initiatives to comply with China's requirements.
It will be able to obtain the necessary licenses for local network management activities… and the scope of its services will be limited and will focus entirely on maintaining compliance with the applicable regulations in China. "
China is working to facilitate the internationalization of the yuan and get out of the shadow of the US dollar. The advancement of the digital yuan has been a sign of this, and it may soon be able to achieve this when all systems work internally and internationally.
