China’s CBDC has only tested retail with small deals, although rumors suggest otherwise. At the same time, the country’s Blockchain-based Service Network is exploring further developments.
Despite numerous reports claiming that the Central Bank of China is experimenting with large volume transactions for its CBDC, the bank recently said it is focusing on small transactions but confirmed that trials are underway in various regions.
China CBDC Tested for Small Transactions
In recent weeks, various reports have claimed that the People’s Bank of China has been testing its central bank digital currency (CBDC) with massive transaction volumes to determine how much load is required.
In addition, further rumors emerged that transactions in Shenzhen, South China’s Guangdong Province, supported the use of digital currency after some residents claimed that they had received large amounts of digital currency from banks after selling local properties.
However, GlobalTimes denied the rumors citing the PBoC. In a report today, a local news outlet said that the central bank is currently testing CBDCs only on small retail transactions.
“At the current stage, the main purpose of this test is to ensure that digital currency operations run smoothly and securely, and to determine how CBDCs are distributed from central banks to financial institutions.
Only if the retail trial is successful will it be carried out in a big deal scenario.”
assistant professor of the Gaoling School of Artificial Intelligence at Renmin University Wang Peng.
Digital currency trials did continue in Shenzhen, Suzhou (East China’s Jiangsu Province), Chengdu (the capital of Southwest China’s Sichuan Province), and Xiongan New Area in Hebei Province.
The Shenzhen subsidiary is very active these days. After posting multiple positions for blockchain development and research engineer, the local research unit has hired several new team members.
BSN China Continues With Development
The China Blockchain-based Services Network (BSN), which aims to facilitate and lower the cost of blockchain development, has also been active in recent times. After integrating Chainlink and partnering with NEO, Yifan He from Red Date Technology recently explained the advantages of BSN in a comprehensive post.
He highlighted the benefits of DLT, but noted that building a network from scratch can take a lot of time and money. In response, BSN made it “cheap for everyone to use because it has to be close to zero.” He added that the main idea of BSN is to grow as a “huge interoperability environment”.
Additionally, he suggested that the platform could integrate stablecoins like Tether starting next year.