At the annual meeting in Beijing, Chinese legislators will discuss the possibilities of the digital yuan, as well as its further testing and use cases.
The meeting will be organized by the People’s Political Consultative Council of the People’s Republic of China (CPPCC) and the National People’s Congress of China (NPC). More than 5,000 local politicians will take part in the discussion, during which the priority tasks of the state for the year will be determined. Special attention will be paid to the digital currency of the People’s Bank of China (PBOC).
The digital yuan has already been tested three times in the cities of Shenzhen and Suzhou. The state digital currency was distributed among the residents of these cities in the form of a “free lottery”, after which the donated assets could be spent in certain stores.
The authorities in Hong Kong, an administrative region of China, have indicated the need for more research on the digital yuan, especially for settlements between organizations. Hong Kong lawmakers have expressed a desire to take part in such testing.
CPPCC member Chen Chunxing noted that the digital yuan has the advantage of tracking cash flows to root out corruption. Many private firms are hoping that the digital yuan will be officially launched soon. Chunxing believes that this will make market competition more open and standardized.
However, the digital yuan still needs to pass a series of tests for the government to make sure it is safe. Recall that last month, China began testing a hardware wallet for the digital yuan. The wallet does not require a smartphone connection and looks like a credit card.
