China says it is ready for an ‘offline-wallet’ for the digital yuan to undergo testing

It is expected that a wallet capable of transferring funds without internet connectivity for both parties will be used in the next pilot stage of the digital yuan project. 8btc reports, citing the director of the China CBDC Institute.

Mu Changchun said the app ‘is fully developed and has a user-friendly interface’.

According to the official, public enthusiasm for participation in the pilot project, initiated by the Shenzhen municipal government, exceeded his expectations.

On October 12, the city authorities conducted the distribution of 50,000 ‘red envelopes’. Winners received 200 digital yuan each with the ability to spend the funds in 3,389 retail outlets.

Applications to participate in the lottery were submitted by nearly 2 million residents of Shenzhen.

The experiment was the first variant of testing a CBDC-based payment system with public participation. According to Mu, the pilot used relatively simple CBDC functions related to payments.

Earlier, the People’s Bank of China selected large companies and state financial institutions for trials.

It became known after the Shenzhen experiment that the DCEP app developers will provide the possibility of offline transfers between mobile phones.

As noted, Primitive Ventures’ managing partner Dovi Wan believes that with the transition to DCEP the central bank will gain even greater control over monetary policy.

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