China will continue to expand its digital yuan CBDC pilot program, the central bank said. The central bank is currently testing the CBDC in 17 provinces.
The Chinese central bank reiterated its intention to continue with the digital yuan pilot program. CBDCs are currently being trialed in 17 provinces. The finance association said the central bank will focus on creating a system that will allow consumers to “scan codes with a code”.
The central bank hopes to “continue to carry out innovative applications of the digital renminbi and realize the connection between the digital renminbi system and traditional electronic payment instruments.” Much effort has gone into making the digital yuan a practical means of payment. China is already a country focused on digital payments, and a CBDC would fit in with that.
Over the past 18 months, central banks have steadily expanded the scope and presence of CBDCs. The announcement noted that the People’s Bank of China has carried out nearly 30 “red envelope” activities in the pilot areas with the aim of promoting consumption and low-carbon travel.
It’s clear that China is keen to roll out its digital yuan for full adoption. CBDCs have been in the works for years, and many countries are beginning to realize the value of digital currencies.
Wealth Management Products Using the Digital Yuan
The digital yuan also brings other changes to its utility. The central bank recently said it will launch wealth management products that will enable CBDC payments in pilot provinces.
Investment bank China Galaxy Securities will offer wealth management services, which will only be available to some clients. Still, it’s a big step forward and could announce more public offerings.