The People’s Bank of China {PBOC), China’s central bank, started its digital currency project in 2014. The PBOC reportedly accelerated its development in 2019 after Facebook unveiled its own cryptocurrency, called Libra.
On Friday, China’s Ministry of Commerce said it will launch a digital currency pilot program in some cities.
These cities include those in the northern Chinese region of Beijing-Tianjin-Hebei, eastern region of Yangtze River Delta, “Greater Bay Area” around the Pearl River Delta, and some cities in Midwestern China according to Reuters report.
In April China’s digital currency project reached a new milestone when the People’s Bank of China (PBOC) launched the first trials of the digital RMB in four Chinese cities—Shenzhen, Suzhou, Chengdu, and the Xiong’an New Area near Beijing. Chinese media reported that digital RMB would be used for transportation subsidies in Suzhou and primarily focus on food and retail services in Xiong’an.
Although China has kept the steam in the development of its digital currency, Facebook on the other hand is Facing hurdles with regulators in the U.S, resulting in some of its partners to pull out of Libra launch.
Facebook announced in June 2019, that it would launch the Libra digital currency, with a goal of making payments easier and cheaper.
Its partners in the Libra Association include Lyft, Spotify, Shopify etc. but several other high-profile members such as Visa left after the idea was criticised by authorities.
In March it was reported that the Social media giant is rethinking its plans for its own digital currency after resistance from regulators. However, the firm said: “Facebook remains fully committed to the project.”
There is currently no official date for China’s launch of its digital currency. However, Yi Gang, governor of the People’s Bank of China, told the media in May that the PBOC will be planning another trial during the 2022 Winter Olympics in Beijing.
Written by;
Ifunanya Ikueze
