Despite its stance on Bitcoin mining, China’s authorities will test the Digital Yuan, e-CNY, or Digital Currency Electronic Payment (DCEP) on Beijing’s subway lines. The country has launched a new crackdown on the crypto field and appears to be preparing for a significant move on its DCEP project.
Investment firm Sino Global Capital reported the test via a tweet, and according to the announcement, the digital coin will be used with a QR code technique to pay for the entry and exit from the transportation system. Users need to download an app from the government that’s linked to the Industrial and Commercial Bank of China (ICB) and activate the service. The test will take place in 24 lines of the subway and four suburban railways, the report said.
“For users who have opened ICBC’s DCEP / e-CNY, they can click on “Yitongxing/亿通行 APP” under the ICBC Wallet in the “Sub-wallet” section of the digital renminbi APP, and then navigate to the “Digital RMB Zone” of the Yitongxing APP to open the service.”
After the test phase, the firm says that the Beijing subway will keep promoting the use of the coin in ‘multiple scenarios,’ including ticket sales. The Digital Yuan will be adjusted to enhance users’ travel experience.
How This Test Will Impact Global Economy
In another report, the former top Japanese financial regulator Toshihide Endo says that the Digital Yuan will directly impact the global economic dynamics. In particular, Endo said that other countries could feel pressured into doubling down on their attempts to launch their own CBDCs.
“If it launches a CBDC, China will be armed with huge social infrastructure. It would be a move hard to ignore for other nations. Japan and other advanced nations will face the tough question of how quickly they should follow,” the regulator said in the report.
The People’s Bank of China (PBoC) is already way ahead of numerous countries in Asia, Europe, and the United States.