People's Bank of China to Test Digital Currency with Banks and Telecom Operators

The People's Bank of China will conduct digital currency testing (DC/EP) in Shenzhen and Suzhou in the near future, according to a Chinese financial news agency Caijing report.

The NBK has entered into a partnership agreement with seven state-owned companies to conduct the test, including four commercial banks and three telecommunications giants. The news agency notes that the Central Bank expects a competitive approach from commercial banks, encouraging them to come up with their own implementation strategies.

The pilot program will focus on industries such as transportation, education, trade and medical services. Some banks decided to work with telecommunication companies to develop SIM cards with integrated digital wallets, while others created their own wallet applications. Presumably, the program will be implemented in two stages. After a short testing period at the end of this year, DC / EP will be widely promoted in cities in 2020.