China is currently aggressively testing its CBDC called digital yuan across multiple provinces in the country. It is all set to expand the trials to over 10 million new eligible users in the coming days as per the Chinese Central Bank deputy governor. Fan Yifei, the deputy governor during his recent address said that people willing to test the upcoming CBDC can register with the regional bank’s “whitelist” which would make them eligible for the trials.
At present, there are 10 million registered users on different white lists of regional banks. China is currently at the forefront of the CBDC game having already completed the development of its sovereign digital currency back in 2019. It has been testing the CBDC for two years now and plans to accelerate the trial this year to the masses.
During the early phase of the trials, an airdrop model was used where the authorities airdropped millions in digital yuan for registered users to claim. The current rapid expansion of the trials beyond the early airdrop model suggests the government is nearing the end of the trial phase and a countrywide launch could soon be a reality.
Is China’s Recent Crypto Crackdown to Cut Digital Yuan Competition?
China has unleashed one of the strictest crypto crackdowns in the country to date, banning crypto trading activities as well as crypto mining in the country. While the most populated state has always been hostile towards crypto assets, this year saw strict measures against crypto businesses and a complete shut down of crypto mining farms.
Most recently, it shut down a software company that was allegedly found to be involved with crypto trading. The central bank also warned businesses against offering office spaces to any virtual asset company in near future. Many believe the recent strictness on the crypto businesses is to eliminate competition against its digital yuan believed to be on the verge of a public launch.
The Deputy Governor of the Chinese Central Bank earlier today criticized stablecoins as well calling it a tool for money laundering along with Bitcoin.