The bustling Chinese cities of Shanghai and Suzhou are reportedly setting their sights on accelerating the adoption of the country’s Central Bank Digital Currency (CBDC), colloquially referred to as Digital Yuan.
The urgency is driven by the recent announcement made by the People’s Bank of China (PBoC), divulging that $250 billion worth of Digital Yuan transactions have been processed nationwide. A staggering figure, to say the least, yet it constitutes a minor fraction of the Chinese economy, rousing the motivation of China’s thriving metropolises to spearhead further promotion of the digital currency.
As per Shanghai Securities News, the Suzhou Municipal Bureau of Commerce coordinated a digital yuan meeting with its Special Digital Yuan Promotional Committee and eight top-ranking banks. The dialogue revolved around boosting investment in publicity, formulating more promotional strategies and developing a myriad of application scenarios for the digital coin. One major proposition echoing in the discussion was the enhancement of the whitelisting system, pivoting focus from retail towards more expansive areas like the wholesale and B2B markets.
On the other hand, both Suzhou and Shanghai’s advancements towards increasing CBDC adoption has garnered the attention of the National Development and Reform Commission (NDRC), a macroeconomic planning entity directly managed by the State Council. The NDRC recently endorsed policies to bolster the cooperative efforts of the PBoC, Shanghai, and Suzhou in elevating Digital Yuan adoption.
Merely relying on governmental entities to drive CBDC adoption isn’t sufficient; regional Chinese banks seem to be harnessing their agency in this matter too. Case in point, the Bank of Jiangsu orchestrated a series of digital yuan promotion events in Huai’an, including a night market and fun run.
Nevertheless, these efforts to accelerate the adoption of digital yuan aren’t devoid of concerns. Transparency and communication are of utmost necessity for a smooth transition towards a potentially blockchain-based future. Too many uncertainties loom around widespread digital currency adoption: Will slower internet speed areas be left behind? How will offline transactions be managed?
To ease these apprehensions, it is essential for the PBoC, NDRC, and regional banks to ensure an active feedback system and provide in-depth financial education workshops. As China bolts towards digital yuan’s future, the rest of the world watches, acknowledging the potential influence this could have on the global financial landscape.
Source: Cryptonews
