People’s Bank of China to test Digital Yuan in Beijing

The People’s Bank of China (PBOC) plans to organize an official testing zone for the state-owned cryptocurrency in the Chinese capital as part of an experiment to create a free trade zone in Beijing.

This week, the Beijing Financial Supervision Authority and the Tongzhou District government held a conference where they talked about the plans of the NBK Institute for Digital Currency Research to create a testing zone for the state cryptocurrency and digital financial system in the Chinese capital.”

According to the officials, the pilot project of the state cryptocurrency is now included in the planning at the state level, which is noted in the document on the “test free trade zone” in Beijing and other cities.

According to the Chinese news agency Sina, the conference also discussed the implementation of China’s “two-area” policy, which includes facilitating market access for foreign financial institutions, the development of international capital management, as well as the beginning of experiments with digital currency.

The Chinese government’s planned pilot project to test the state-owned cryptocurrency in Beijing follows similar efforts in the city of Shenzhen.

Recall that in early October, Shenzhen, in cooperation with the People’s Bank of China, announced its intention to distribute 10 million digital yuan ($1.5 million) among 50,000 residents through a lottery. Later, it was reported that 88% of the digital yuan distributed among citizens was spent to pay for goods and services.

In addition, the governor of the People’s Bank of China Yi Gang recently said that 4 million transactions worth 2 billion yuan ($299 million) were successfully conducted as part of the digital yuan testing.