The People’s Bank of China hosted a symposium on digital RMB research and development pilot work on March 31, 2022. On the panel, they announced their expansion of Digital Yuan to over 23 cities.
It was also held to summarise the preliminary research and development pilot work and plan for the next stage of work.
China plans to advance RMB research ad development
According to the country’s central bank, China is expanding the test phase of its Digital Yuan experiments to new cities, including Hangzhou, which will host the Asian Games in September.
To date, the country’s Digital Yuan testing has taken place in 11 cities, and the People’s Bank of China (PBoC), the country’s central bank, intends to expand the digitization trials to other locations.
According to the People’s Bank of China, the current digitization experiments would now prioritize privacy protection and crime prevention.
As per the details released in the press release, Digital Yuan experiments were held in Shenzhen, Suzhou, Xiong’an, Chengdu, Shanghai, Hainan, Changsha, Xi’an, Qingdao, and Dalian.
The bank now intends to extend the trials to Tianjin, Chongqing, Guangzhou, Fuzhou, Xiamen, Hangzhou, Ningbo, Wenzhou, Huzhou, Shaoxing, and Jinhua.
As a reaction to digital transformation and the fast rise of private digital platforms, the PBoC wants to build the Digital Yuan, also known as Digital Renminbi, by the central bank.
The PBOC intends to boost market competitiveness by issuing its own digital currency, which will improve the efficiency and security of the payments system, allow for speedier payments, and lower transaction costs.
The PBoC stated in its annual report on the Digital Renminbi that there would be further testing of cross-border use based on local practices and international demand, following the principles of compliance, interoperability, and no interruption.
The Digital Yuan is also planned to be showcased at two significant sporting events, the Chengdu Summer Universiade and the Hangzhou Asian Games.