China's Central Bank to Lead Real-World Pilot of Digital Yuan
China is at last planning to conduct the first real-world test of its central bank digital currency (CBDC), fresh reports claim.
According to local news outlet Caijing on Dec. 9, the initial pilot for the CBDC is set for the city of Shenzhen before the end of 2019, and may possibly include the city of Suzhou.
In Shenzhen, the PBoC is encouraging what it describes as a “horse race” — each bank will manage the digital currency differently, competing against each other in order to secure its model’s wider adoption in the future.
The debut will nonetheless make the PBoC the world's first central bank to issue a digital currency, capitalizing on China's efforts to embrace financial technology this year.
Criticism of the CBDC plans meanwhile continues, with analysis noting interoperability as a potential major sticking point in the plans.