The distribution of China’s national digital yuan will begin in May among local government employees in the city of Suzhou, local news outlet China Star Market has reported.
April 16, 2020 | AtoZ Markets – According to the media, starting next month, state employees will start receiving 50% of their transportation subsidies in the new national digital Yuan—known officially as a digital currency/electronic payment (DC/EP). The test pilot will initially target employees in the city of Suzhou.
How can state employees receive China’s digital yuan?
Four-state owned banks will issue the payments, says the report, including the Bank of China; the Agricultural Bank of China; the Industrial and Commercial Bank of China; and the China Construction Bank.
In order to receive the currency, employees in this city must download the digital wallets developed by these banks. Citing an official letter, the report explains that the banks must sign a digital currency distribution agreement before the end of April.
The financial giant Alipay has also shown its interest in participating in the initiative, both in the development of its technology and in the issuance of the currency.
China’s digital wallet is in a public beta
This will follow the initial beta phase, which has just started. As AtoZ Markets reported, the digital wallet is available for download in four cities selected for the initial trial. Moreover, one of the banks participating in the project, the Agricultural Bank of China, had made its digital wallet available for download.
For starters, the app appears to be operating similarly to other online payment platforms such as Alipay and WeChat Pay.
It also illustrates a feature called touch and touch. It allows two people utilizing the app at the same time to simply touch their mobile devices. The app also allows them to execute a money transfer immediately.
What do you think, is China ahead of America in pushing out a revolutionary technology? Share your thoughts in the comment section below?