China Takes Digital Yuan Trial to Beijing
- The PBoC also decided to test the DCEP in the Greater Bay Area.
The Chinese Commerce Ministry is expanding the testing program of its digital yuan by taking the trials to more regions, including the city of Beijing and other affluent provinces.
As reported by the Wall Street Journal today, the newly selected regions for the trial include Tianjin and Hebei province in the north; the Yangtze River Delta to the south; and the country’s wealthy southern coast, Guangdong province.
The ministry did not set any specific deadline for the completion of the pilot, but the policy framework for the central bank digital currency (CBDC) is expected to be completed by the end of this year.
The Chinese central bank initiated the development of digital yuan, officially called the digital currency electronic payment (DCEP), in 2014. This was far ahead of other global monetary regulators, many of which are still assessing the feasibility for a digital currency development.
After the completion of the development, the People’s Bank of China (PBoC) first started the pilot last month by partially paying the state employees’ salaries in four provinces - Shenzhen, Suzhou, Chengdu, and Xiong’an.
The recent extension of the digital yuan trial also followed the PBoC’s decision to circulate the digital yuan in Hong Kong’s Greater Bay Area consisting of nine cities including Guangzhou, Shenzhen, Hong Kong, and Macau.
Partnering Companies with Massive Outreach
Apart from the geographical expansion for the digital currency trial, the central bank is partnering with several companies and institutions to build proper infrastructure and put it into real-world use.
Finance Magnates earlier reported on the central bank’s partnership with DiDi Chuxing, a major ride-hailing giant, and Meituan Dianping, a Tencent-backed food delivery Startup Startup A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is created by at least one or more entrepreneurs. These seek capital as a means to bypass a limited availability of capital and combat high costs. This is why startups seek funding from funding rounds, crowdfunding, venture capitalists, financial institutions, or other sources. What Makes Startups Successful?Given the fact that most startups fail, the first three years of a startup are critical which is why startup founders require capital for talent acquisition, creating effective business models and plans.In parallel it is important to provide proof-of-concept for the long-term through an established user base and consistent revenue streams. Many startups use seed funding, which occurs during the first stage of funding rounds, where fundraised capital is used to conduct market research and product or service development.Sometimes, startups go through an acquisition process, where they merge larger companies competing in a similar industry. Companies that generate less than $20 million annually, possess less than 80 employees, and are primarily controlled by the founding entrepreneur(s) are generally classified as startups. Today, some of the world’s most successful companies started as startups, such as Facebook, Uber, and SpaceX to name a few. A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is created by at least one or more entrepreneurs. These seek capital as a means to bypass a limited availability of capital and combat high costs. This is why startups seek funding from funding rounds, crowdfunding, venture capitalists, financial institutions, or other sources. What Makes Startups Successful?Given the fact that most startups fail, the first three years of a startup are critical which is why startup founders require capital for talent acquisition, creating effective business models and plans.In parallel it is important to provide proof-of-concept for the long-term through an established user base and consistent revenue streams. Many startups use seed funding, which occurs during the first stage of funding rounds, where fundraised capital is used to conduct market research and product or service development.Sometimes, startups go through an acquisition process, where they merge larger companies competing in a similar industry. Companies that generate less than $20 million annually, possess less than 80 employees, and are primarily controlled by the founding entrepreneur(s) are generally classified as startups. Today, some of the world’s most successful companies started as startups, such as Facebook, Uber, and SpaceX to name a few. Read this Term.
Furthermore, the monetary regulator on-boarded retail giants like McDonald’s, Starbucks, and Subway to ramp up the trial of the digital currency.
Though the PBoC governor earlier denied any timeline for launching digital yuan, a local media house reported that the central bank is rushing the project, given the uncertainties of sanctions as well as a sour relationship with the United States.
The Chinese Commerce Ministry is expanding the testing program of its digital yuan by taking the trials to more regions, including the city of Beijing and other affluent provinces.
As reported by the Wall Street Journal today, the newly selected regions for the trial include Tianjin and Hebei province in the north; the Yangtze River Delta to the south; and the country’s wealthy southern coast, Guangdong province.
The ministry did not set any specific deadline for the completion of the pilot, but the policy framework for the central bank digital currency (CBDC) is expected to be completed by the end of this year.
The Chinese central bank initiated the development of digital yuan, officially called the digital currency electronic payment (DCEP), in 2014. This was far ahead of other global monetary regulators, many of which are still assessing the feasibility for a digital currency development.
After the completion of the development, the People’s Bank of China (PBoC) first started the pilot last month by partially paying the state employees’ salaries in four provinces - Shenzhen, Suzhou, Chengdu, and Xiong’an.
The recent extension of the digital yuan trial also followed the PBoC’s decision to circulate the digital yuan in Hong Kong’s Greater Bay Area consisting of nine cities including Guangzhou, Shenzhen, Hong Kong, and Macau.
Partnering Companies with Massive Outreach
Apart from the geographical expansion for the digital currency trial, the central bank is partnering with several companies and institutions to build proper infrastructure and put it into real-world use.
Finance Magnates earlier reported on the central bank’s partnership with DiDi Chuxing, a major ride-hailing giant, and Meituan Dianping, a Tencent-backed food delivery Startup Startup A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is created by at least one or more entrepreneurs. These seek capital as a means to bypass a limited availability of capital and combat high costs. This is why startups seek funding from funding rounds, crowdfunding, venture capitalists, financial institutions, or other sources. What Makes Startups Successful?Given the fact that most startups fail, the first three years of a startup are critical which is why startup founders require capital for talent acquisition, creating effective business models and plans.In parallel it is important to provide proof-of-concept for the long-term through an established user base and consistent revenue streams. Many startups use seed funding, which occurs during the first stage of funding rounds, where fundraised capital is used to conduct market research and product or service development.Sometimes, startups go through an acquisition process, where they merge larger companies competing in a similar industry. Companies that generate less than $20 million annually, possess less than 80 employees, and are primarily controlled by the founding entrepreneur(s) are generally classified as startups. Today, some of the world’s most successful companies started as startups, such as Facebook, Uber, and SpaceX to name a few. A company operating within its first stage of investing is known as a startup. While startups may give the impression that the company must be new, that is not always the case.Many companies can have this designation after nearly three years of existence. Typically, a company exits the startup status after a period between 3 to 5 years or after successful funding rounds where capital is acquired. Startups tend to derive out of the belief that there is a demand for a service or product which is created by at least one or more entrepreneurs. These seek capital as a means to bypass a limited availability of capital and combat high costs. This is why startups seek funding from funding rounds, crowdfunding, venture capitalists, financial institutions, or other sources. What Makes Startups Successful?Given the fact that most startups fail, the first three years of a startup are critical which is why startup founders require capital for talent acquisition, creating effective business models and plans.In parallel it is important to provide proof-of-concept for the long-term through an established user base and consistent revenue streams. Many startups use seed funding, which occurs during the first stage of funding rounds, where fundraised capital is used to conduct market research and product or service development.Sometimes, startups go through an acquisition process, where they merge larger companies competing in a similar industry. Companies that generate less than $20 million annually, possess less than 80 employees, and are primarily controlled by the founding entrepreneur(s) are generally classified as startups. Today, some of the world’s most successful companies started as startups, such as Facebook, Uber, and SpaceX to name a few. Read this Term.
Furthermore, the monetary regulator on-boarded retail giants like McDonald’s, Starbucks, and Subway to ramp up the trial of the digital currency.
Though the PBoC governor earlier denied any timeline for launching digital yuan, a local media house reported that the central bank is rushing the project, given the uncertainties of sanctions as well as a sour relationship with the United States.