China to test out new digital currency2020-04-21 18:08 by Daniela
China has started testing its government-backed digital currency in some regions before it is introduced to the public, aiming to replace paper notes and coins in circulation, according to the People's Bank of China, the central bank.
For now, the tests and trials will be conducted in "closed environments" and will not have any impact on related institutions. Additionally, it is confirmed that the digital cash does not require a bank account and can be transferred peer to peer even when there's no network signal.
"In the short term, the central bank's digital currency will not be issued in large amounts for the public and the velocity of the money in circulation will not be influenced or lead to an inflation surge," said a statement on the PBOC's official WeChat account on Saturday.
Cash is already a rare sight in China. With popular digital services like Alibaba's Alipay and Tencent's WeChat Pay, China's payment tech leapfrogged the rest of the world in sophistication and adoption years ago.
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