As China attempts to recover from the COVID-19 outbreak, new details emerge about its central bank-issued digital token, including a connection to Starbucks and other western businesses. The token will now be tested in the Xiong’an New Area among other places.
Within the cryptocurrency industry, few upcoming projects are as anticipated as the Central Bank Digital Currency (CBDC) from the Chinese Government. This is because the government has been rather closed off with regards to cryptocurrency, banning its use and cracking down on cryptocurrency mining activities.
The confirmation of the development of the token signaled a turning point in the treatment of cryptocurrencies within the country and also has far-reaching implications for digital currency use on the world stage as it’s likely that other countries will follow in China’s steps.
China Partnering with the West for Launching CBDC?
For a significant amount of time, very little information was released about the token as the Chinese Government has kept mostly quiet on the subject. However, ChainNews, a Chinese media outlet, recently released some alleged information about the token. The information in question regards a pilot promotion meeting that was held in the Xiong’an New Area where the token will be tested. The meeting was reportedly organized by the Reform and Development Bureau of the Xiong’an New District Management Committee.
Digital Currencies on a National Scale
This development project will see a great deal of input from the National Development and Reform Commission, which has previously held a conference on the benefits of digital currency. Following the COVID-19 outbreak, the commission has more to work with for their research as the token is being considered a form of economic stimulus. A working branch of the Chinese central bank will also be developed in the test city, in line with plans to create a digital city in Xiong’an New District. The token itself is seeing rapid progress in its development, with the Agricultural Bank of China and Bank of China reportedly working on a wallet for the token in the Chinese cities of Shenzhen, Suzhou, Xiong’an New Area, and Chengdu.
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