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China to use digital currency at the Olympics

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China plans to use its new digital currency during the Winter Olympics in Beijing in 2022.

This is reported by Reuters, citing the head of the monetary policy department of the People's Bank of China (PBoC), Sun Guofeng, as a source.

Reuters reveals that Sun has stated that the PBoC has not yet decided when it will launch its CBDC to the market, but that it is likely to be released before the 2022 Winter Olympics, as it is intended to be used during sporting events.

At first, when the field tests were announced, it was thought that the Chinese DC / EP (digital currency / electronic payments) could be launched on the market from 2020, but these new statements from Sun suggest that it may take longer.

China, ongoing testing but unclear timeframe for digital currency

After all, although testing has been going on for several months, the PBoC never wanted to reveal the expected release date, probably because, as Sun confirmed, this date has not yet been decided.

However, even though the ongoing tests have not created any particular problems, Sun's words sound a bit like a postponement, as if they decided to take more time for field tests.

Also, it was discovered yesterday that current tests were focus only on small retail transactions, that is, they have not yet been extended to scenarios that require high volume transactions. Therefore, it is quite possible that the PBoC has decided to continue with the tests, probably with a view to extending them to uses other than those tested so far.

The DCEP, according to official statements, is the same as the legal tender Yuan, so much so that it can be converted to Yuan, so the tests probably only refer to the operation of the technological infrastructure on the basis of this important innovation. .

In particular, Renmin University Prison School of Artificial Intelligence professor Wang Peng said:

“At its current stage, the main objective of the test is to ensure that the operation of the digital currency runs smoothly and safely, and to determine how the DCEP is distributed from the central bank to financial institutions. Only when the trials in retail are successful will they be carried out in large transaction scenarios. "

In light of this, it is possible to imagine that the PBoC still needs several months of testing before you can announce the DCEP market launch, and it's also possible that the tests done so far have led to some issues. In fact, these tests with small transactions have been going on for several months now and it sounds a bit strange that they have not yet produced enough positive results to be able to move on to the next phase.



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