As per a report, various state-run commercial banks in China are testing a wallet in a large scale which is designed for China's national digital currency - the digital yuan.
Reuters reported on Aug. 5 that the banks are conducting the test of the wallet application so as to make sure the smooth development in transferring money and making payments in China's central bank digital currency (CBDC). It's reported that a train of employees at involved state-run banks in cities covering Shenzhen initially disclosed its development to the 21st Century Business Herald, a China's state-backed newspaper.
The new development indicates there is another major milestone in China's progress in the adoption of the digital yuan and coincides with a key aim set by the People's Bank of China - China's central bank. According to the report by the PBoC on Aug. 3, China should prioritize its development of the digital yuan for the second half of this year.
Although China has become one of the most-strict nations in crypto regulation, it is the leading player in developing a national digital currency. China's central bank has made steady progress in its CBDC, that is, digital currency electronic payment. April saw that China successfully piloted the project in four cities, covering Shenzhen, Chengdu, Suzhou and Xiongan.
As per a report on Aug. 4, the PBoC is purportedly planning to employ the digital yuan to challenge the dominance role of tech giants such as Alibaba and Tencent in the digital payments industry. According to a previous report by Reuters in late July, the Central Bank formally recommended that the State Council's antitrust committee conduct research on the activities of Alipay and WeChat Pay, the digital payments titans.