China’s Central Bank Has Begun Cautiously Testing a Digital Currency
The People’s Bank of China has developed a digital currency that’s designed to scale to the number of transactions made every day across the country.
China’s central bank is testing a prototype digital currency with mock transactions between it and some of the country’s commercial banks.
Speeches and research papers from officials at the People’s Bank of China show that the bank’s strategy is to introduce the digital currency alongside China’s renminbi. But there is currently no timetable for this, and the bank seems to be proceeding cautiously.
Nonetheless the test is a significant step. It shows that China is seriously exploring the technical, logistical, and economic challenges involved in deploying digital money, something that could ultimately have broad implications for its economy and for the global financial system