The Chinese city of Suzhou is reportedly rolling out tests for the country’s central bank digital currency dubbed DC/EP in the “red packet” starting next month.
The Paper, an online medium under the state-owned Shanghai United Media Group, reported that the trial will take place on December 12, a date known as Double 12 in China – the year-end shopping festival.
It was also previously reported that some government employees were given transportation allowances in digital yuan – also known as DC/EP – as part of the ongoing trial in Suzhou.
The trial in Suzhou will be similar to the previous digital yuan trial
According to local news reports, the broader form of the trial in Suzhou will be similar to that held in Shenzhen in October, where about $1.5 million digital yuan was given to 50,000 residents as “red packets” via a lottery.
Residents who won the lottery can spend free digital yuan at more than 3,000 shops participating in the Shenzhen trial. The People’s Bank of China is poised to become the first major country in the world to issue a central bank-backed digital currency.
Central banks around the world exploring CBDC
China may excel at issuing central bank-backed digital currencies, but it is not the only country developing digital currencies. Several central banks around the world are actively seeking to issue CBDCs. Although many small countries have launched versions of their digital currencies,
China is the only major country that has completed development and started full plans to test its CBDCs. As previously reported, the island of Cayman launched a national digital currency this year. Countries including Canada, Japan, the Philippines, and many others are actively exploring CBDCs.