Innovations and Startups: China Begins Testing Its Digital Currency XXL

China may never know such a good time to launch a new product with the potential to revolutionize its economic fabric. While it has long shunned cryptocurrencies, the Middle Kingdom has just launched a massive XXL test site for its digital currency. What are the stakes of such a currency? How will the test take place? We will tell you everything without delay!

COVID-19 crisis? not even afraid

While China is still facing the COVID-19 crisis, the country has decided to start full-scale testing of its digital currency. Four cities have been selected for this first trial phase. Including Shenzhen, Chengdu, Suzhou and Xiong’an.

Beijing officials who are confident in their project believe that if this testing phase proves to be conclusive, a nationwide deployment of its digital currency is expected in the coming months.

So what is this currency?

The question is logical, as far as it is difficult to imagine China offering derivatives of the yuan on online platforms. Backed by the Chinese yuan, electronic money will only be distributed locally and in small amounts. The idea is to gradually improve the features.

For such a sudden launch?

You are not unaware that China, like France or its European neighbours, is in captivity. Certainly deconfinement has started there, but more than 80% of the country is surrounded by houses. However, for residents who manage to obtain passes to shop and pay bills, honest and strict respect for barrier measures is essential.

Especially the use of electronic wallets. As a result, Beijing’s idea is to take advantage of the increase in electronic transactions to test its digital currency in real conditions.