China aims to use the digital yuan in the 2020 Winter Olympics. While China is taking actual steps to implement its national digital currency project, the United States of America (USA) is just trying to grasp this issue.
According to a report in Somag News, China announced last week that it will begin piloting in 4 regions, including some cities that will host the 2022 Winter Olympics. Sun Guofeng, Head of the Monetary Policy Department of the People’s Bank of China (PBoC), told Reuters that internal tests have been conducted on China’s official digital currency, in Shenzhen, Suzhou, Xiongan and Chengdu, although there is no timeline for their launch. He announced plans to be used in the 2022 Winter Olympic Games to be held in Beijing.
Used for Small Scale Payments
According to information from local news organizations, China’s digital yuan test is currently limited to small-scale retail payments. Rumors earlier this month suggested that the digital yuan was spreading to large volumes of transactions.
Local officials say digital yuan payments are small and plans to support large transactions do not cover the near future. Currently, only small-scale pilot tests of the digital yuan (officially the Digital Currency Electronic Process (DCEP)) are in progress in Shenzhen, Chengdu and Hebei Province.
Shenzhen, one of the pilot regions, has been recruiting more positions in recent months. These include vacancies for blockchain development and research engineers, but none of them support a large-scale launch, at least for now. Meanwhile, industry watchers say the country is still testing the environment before launching the digital yuan.
USA Left Behind in Digital Currency
While China’s digital currency steps are continuing significantly, many say that the US is behind in this matter. While China is taking actual steps, the Federal Reserve (Fed) stated in a statement in mid-August that they are preparing for digital currency trials. However, according to the statements of Board Member Lael Brainard, although the Fed’s digital currency trials are not yet ready to digitize the dollar, these studies are currently being carried out to weigh the significant effects of digital currencies.