China’s Digital Yuan in the 2022 Winter Olympic Games

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birth of red china flickr cropped 1
  • China has been conducting extensive tests on digital currency and it plans to use it during the 2022 Beijing Winter Olympics scheduled.
  • The Chinese central bank is conducting mass trials of its digital currency across Shenzhen, Suzhou, Xiongan and Chengdu.
  • it will first try to see its success in small retail transactions before implementing it on the mass scale.

Globally, countries have been exploring the option of various versions of digital currencies. According to a report from the Bank of International Settlements (BIS), there are almost 19 countries which are either creating or researching the possibility of issuance of digital currency. Almost all of these countries have cited ‘financial inclusion’ as the main reason for exploring CBDCs.

And China is no different. In fact, China has been conducting extensive tests on digital currency and it plans to use it during the 2022 Beijing Winter Olympics scheduled. However, Sun Guofeng, head of the monetary policy department at the People’s Bank of China hasn’t given any fixed timeline about its Digital Yuan rollout.

The Chinese central bank is conducting mass trials of its digital currency across Shenzhen, Suzhou, Xiongan and Chengdu. The People’s Bank of China (PBoC) had earlier announced that it will first try to see its success in small retail transactions before implementing it on the mass scale.

Cointelegraph also reported on 15 August, that the bank was planning to roll out the pilot test for digital yuan and renminbi (china’s official currency) trials, across the country’s most developed regions. Adding to this, the Commerce Ministry said in an announcement on Friday that Tests will be conducted in northern China including Beijing, the Yangtze River Delta City Cluster including Shanghai; Tianjin Coastal City and Hebei Province and the Pearl River Delta Greater Bay Area including Shenzhen, Hong Kong and Macau. And cities in central and western China may also continue with the trials if they meet certain conditions.

The Winter Olympics will be held in Shenzhen, Chengdu, Suzhou, the Xiongan districts respectively. Other regions are expected to play a supporting role in the promotion and development of digital yuan. Meanwhile, Ripple founder Chris Larsen was of the view that with the technological advances in the cryptocurrency industry dollar value seems to have reduced. Larsen feels China could well be a leader in the global finance world with digital yuan efforts and online payment systems. 

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