© Reuters
Investing.com – As China’s central bank ramps up efforts to create a digital currency, the country has released a pilot edition of its yuan digital wallet app on mobile phone app stores. The app was developed by the People’s Bank of China (PBoC) Digital Currency Research Institute.
The application would be in an experimental research and development phase and would only be accessible to certain people through authorized e-CNY service providers.
This development follows crackdowns by the Chinese government to annihilate the private crypto industry. These initiatives have cleared the ground for the establishment of a centralized, government-controlled cryptocurrency.
Crypto remains the preserve of the government in China
In late fall 2021, PBoC Governor Yi Gang said the country would continue to develop its central bank digital currency (CBDC) and improve its design and use, including strengthening interoperability with current payment systems. The PBoC announced at a year-end meeting that it would continue to push for the development of the digital yuan.
China has taken a considerable lead in the development of a CBDC for public use, ahead of the majority of countries, which are still in the process of finding a CBDC. China’s central bank said the digital currency could be used during the Beijing Winter Olympics in 2022.
The US Federal Reserve, meanwhile, is still considering whether or not to introduce a CBDC for the US. The U.S. central bank has said it is studying the benefits of creating a digital dollar and will eventually come up with a paper on the subject.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy / sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.