Consumers in China have spent over 8.8 million yuan in the first week of trials held to test the feasibility of China’s central bank digital currency. This was one of the largest trials of its kind to be conducted in the country so far. Citizens of Shenzhen in China participated in the trial, which saw them turn to the as-yet-unreleased digital currency for payments in a variety of everyday settings.
Over 1.9 million applicants reportedly participated in the trial.
According to the South China Morning Post report, over 1.9 million applicants reportedly applied to take part in the trials, with in excess of 47,000 consumers ultimately participating in the program. Those selected to take part in the trial were awarded packets of 200 digital yuan for use at supporting outlets, with some 62,000 individual transactions conducted over the trial duration. The more recent round of trials in Shenzhen took the total spending in China’s digital currency to over $1 billion so far, with the central bank and state authorities keen to extensively trial the technology before any larger scale roll-out.
Central banks around the world continue to show interest in CBDCs.
The news confirms China’s position as a global leader in central bank digital currencies, with reports suggesting the Asian country remains ahead of other major central banks in developing a national digital currency. China might be ahead in developing a CBDCs, but it is not the only country to explore the subject. Many countries are showing an increasing interest in CBDCs. Earlier, the U.S. Federal Reserve chairman, Jerome Powell, suggested the United States was waiting to get the right proposals in place, rather than becoming the first to launch in regard with a CBDC. Several other major central banks, including the Bank of Japan, the Philippines’ central bank, are working on a CBDC.