China’s Ministry of Commerce has announced that it will launch digital currency pilot programmes in three major regions in the country, the media reported.
According to the ministry, these three regions are the Beijing-Tianjin-Hebei region, Yangtze River Delta, and the Greater Bay Area.
The digital currency pilot programmes will be launched in some major Chinese city such as Beijing, Tianjin, Hong Kong and Macau.
The Digital Currency/ Electronic Payments (DCEP) has already been trailed in Shenzhen, Chengdu, Suzhou, and the Xiongan economic zone near Beijing.
Earlier this year, China’s apex bank, the People’s Bank of China revealed that it will increase research and development when it comes to the digital version of its currency, yuan.
The topic was discussed during the 2020 national telecom conference organised by the central bank in the month of April.
“The People’s Bank of China will undoubtedly further its research and development of the national digital currency with enhanced top-down design,” the bank said in a notice.
Last year, China also rolled out new laws with regard to online encryption as a part of its plan to launch a digital version of yuan and take greater control of the digital economy.
In recent times, China has also approved major blockchain-based projects in the country to accelerate the launch of its central bank digital currency (CBDC).
The coronavirus pandemic has also accelerated the launch of China’s digital currency as physical cash was termed as a carrier source of the Covid-19 virus and the usage of cash was discouraged by the World Health Organisation (WHO).