Several large state-owned commercial banks in China are taking part in large-scale tests of the central bank digital currency (DCEP) payment system. This was reported by 8btc, citing local media.
The most extensive testing is taking place in Shenzhen. It has been ongoing for several weeks and is part of preparations for the official launch of the central bank’s digital currency.
A representative of one of the banks explained that the “Digital Yuan” app is not yet available to the general public — an identification code is required to download it.
The development of the DCEP is led by the People’s Bank of China, but the applications and services for the digital currency are being developed by commercial banks. The “Digital Yuan” was developed jointly by Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, and China Construction Bank.
After the full launch, the app will allow users to deposit and withdraw funds; make transfers, including transfers by mobile number only; and pay for purchases and make payments using QR codes.
Users will need to open a digital wallet in one of the four banks, linked to their account. This will allow fiat deposits and withdrawals.
Earlier, it was reported that testing of the DCEP began in May with the payment of transport subsidies to Shenzhen, Suzhou, Chengdu and Xunyang officials.
In the same month, a video appeared online showing the proposed conversion of yuan into its digital version for the developing payment system.
Earlier, the central bank had enlisted more than 20 companies in real-world DCEP trials.
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