Despite numerous reports claiming that the Chinese central bank is experimenting with high-volume transactions for its CBDC, the bank recently said that it is focusing on small retail transactions, but confirmed that testing is ongoing in numerous regions.
In recent weeks, various reports claimed that the People's Bank of China had tested the central bank digital currency (CBDC) with a massive transaction volume to determine how much load it can bear.
Furthermore, more rumors emerged that a house transaction in Shenzhen, south China's Guangdong province, supported the use of digital currency after some citizens claimed they had received a large volume of digital currency from a bank after sell a local property.
However, GlobalTimes refuted these rumors by citing the PBoC. In a report today, the local news outlet said that the central bank is currently testing CBDC only on small retail transactions.
“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 CBDC is distributed from the central bank to the financial institutions.
Only when the trials in retail are successful will they be carried out in large transaction scenarios, ”said Wang Peng, assistant professor at the School of Artificial Intelligence at Renmin University Jail.
In fact, pilot tests of the digital currency are taking place in Shenzhen, Suzhou (East China's Jiangsu Province), Chengdu (the capital of Southwest China's Sichuan Province) and the new Xiongan area in the Hebei province.
The Shenzhen subsidiary is particularly active lately. After posting several positions for blockchain R&D engineers, the local research unit has hired several new team members.
China's BSN continues with developments
The Chinese blockchain-based service network (BSN), which aims to facilitate and reduce the costs of blockchain development, has also been active lately. After integrating Chainlink and partnering with NEO, Red Date Technology's Yifan He recently explained the merits of BSN in a full post.
He highlighted the benefits of DLT, but noted that building a network from scratch could take a lot of time and money. In response, BSN makes it "cheap for everyone, since it must be infinitely close to zero." He added that the main idea of BSN is to grow as a “great interoperability environment”.
Furthermore, he suggested that the platform could integrate stablecoins like Tether starting next year.