China to test the digital yuan in large-scale commercial transactions

The Ministry of Commerce of the People’s Republic of China announced an expansion of tests of the central bank digital currency (DCEP) to large-scale commercial transactions. The testing will cover all levels of the sectors, including the hospitality industry and e-commerce payment processing.

According to DeCrypt, the current plans to involve residents of Hebei Province, the Yangtze River Delta, Guangdong, and a number of cities in the inland west in testing the digital yuan.

The first to participate in the program will be the city of Suzhou. According to local media, in the framework of commercial transactions in a test mode DCEP will be tested for companies in the retail, e-commerce and education sectors. The top-up of transit cards with the digital yuan will also be tested.

There are also reports of a similar expansion of the program in Shenzhen. Shoppers in some mini-markets have confirmed the ability to pay for goods using DCEP.

According to a source, there are still disagreements between the Ministry of Commerce and the People’s Bank of China regarding the rollout of the digital yuan, which could affect its launch timeline. Internal debates focus on creating incentives to shift consumers away from the Alipay and WeChat Pay payment systems.

Both agencies are taking user feedback into account to improve the platform’s operation.

“We will allocate additional resources to broaden the use cases for the DCEP. The necessary technical conditions have been created, and the risks remain under control,” said a project spokesperson.

Earlier, in early August, four of China’s largest banks joined the wide-scale DCEP tests.

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