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China has been at the forefront of the growth of the Digital Currency Electronic Payment [DCEP], also known as Digital Yuan, and the country has already conducted various stages of research. According to recent news, it will now begin another round of testing from April 10 to April 23.
This round would involve a greater portion of Shenzhen’s 500,000-person population.
After the advantages of a CBDC were discovered, China has been able to build and implement it, attempting to design its own version of the digital fiat. According to Wang Peng, an assistant professor at the Renmin University of China’s Gaoling Academy, the country was extending its research of automated yuan in two ways.
According to the professor, this was a step to cultivate user preferences and further evaluate the DCEP’s use and implementation by involving more people, situations, and collecting more user data. After October 2020, China has been conducting large-scale experiments for its digital currency.
Shenzen has expanded its wireless yuan trial to 500,000 people beginning on April 10. This update was designed to instil the practise of using digital assets for retail use. The people allegedly received a text message from the Industrial and Commercial Bank of China in Shenzhen instructing them to open a wireless yuan wallet account.
However, it was not the only city that increased research. Hainan, a South Chinese province, is also planning a promotion event in April to test the digital currency.
Given the problems that exist between China and the United States, several scholars have pointed to the implementation of the digital yuan as a “contingency plan” for China. As China moves another step forwards, now may be a critical time for other countries to develop their own digital fiat currencies in order to compete with China.