The evening of April 14 dawned a news that the China’s Digital Yuan has started internal testing at the Agricultural Bank of China (农业银行). The news spread quickly on major blockchain media, and there have been many pictures of digital currency wallets said to be under testing.
The test page shows that digital yuan wallet supports digital asset exchange, digital wallet management, digital currency transaction record query, wallet attachment and other functions, and also supports basic functions such as scan code payment, remittance payment, mobile phone chip and other functions. The internal test screenshot of the Agricultural Bank’s digital currency wallet confirmed the speculation that the external central bank’s digital currency will be tested first in the four major banks.
Digital Yuan and the Four Cities
The wallet is currently limited to whitelisted customers. It is said that Suzhou, Xiong’an, Chengdu, and Shenzhen are the first pilot cities. According to reports, besides the Agricultural Bank, several other large state-owned banks also have corresponding internal test wallets.
Meng Yan, vice president of the Digital Asset Research Institute and founding partner of Ruixin Capital, said in an interview last year that the implementation of digital yuan needs to find a balanced city, which must have a strong financial innovation DNA. Whatever project this city launch, it should have high success rate. If there are mistakes or problems, it will not go out of control easily, then no place will be more suitable than Shenzhen. This may also be one of the important reasons why Shenzhen became the first pilot city.
According to reports, the central bank set up a subsidiary of the Yangtze River Delta Financial Technology Co., Ltd. in Suzhou last year. The company was jointly established by the Central Bank Digital Currency Research Institute and relevant units in Suzhou City to undertake the construction and stable operation of legal digital currency infrastructure; key technical research and legal scenario support for legal digital currency supporting blockchain , Cryptography and other frontiers in financial technology.
Chengdu, as the first-ranked city in the digital economy index of the new first-tier cities in the “China City Digital Economy Index White Paper (2019)” released by the Xinhua III Group Digital Economy Research Institute, has also become a digital and smart city with Xiong’an The pilot cities all have good talents and basic conditions.
More focus has been put on Xiong’an which will host state-of-the-art intelligent infrastructure for satellite information gathering, big data storage, supercomputers, recognition sensors, and a 5G network. The project has attracted several tech giants including Alibaba, JD, Baidu, and TenCent.
It is said that the R&D of the central bank’s legal digital currency helps to innovate the way of currency issuance, circulation and regulation, so as to effectively improve the transaction efficiency of the digital economy and reduce its transaction costs. Legal digital currency is the cornerstone of the development of the digital economy. The continuous advancement of legal digital currency will also provide opportunities for related businesses.