People's Bank of China

State-Backed Agricultural Bank of China Launches the First Digital Yuan ATMs

12/01/2021 by Idelto Editor

The Agricultural Bank of China (ABC), one of China’s “big four” banks, is embarking on a pilot program to enable the first digital yuan ATMs. The banking institution deployed the first machines in selected branches in Shenzhen.

ATMs Will Work With a Smartphone App

According to SZ News, the program is part of the ongoing second digital yuan trial, consisting of a giveaway of 200 yuan ($31) to 100,000 residents.

The ATMs enable the possibility to deposit and withdrawal the digital yuan via a smartphone app. The pilot program’s mobile app allows customers to convert cash and savings to and from the token.

As the digital yuan pilot programs keep underway across the country, it’s not surprising that the ABC is testing the digital yuan ATMs. In fact, the bank is a partner of the People’s Bank of China (PBoC).

Zou Hua, manager of the bank’s Digital Yuan Innovation Lab, commented on the ATMs infrastructure’s deployment across Shenzhen:

Agricultural Bank has taken the lead in launching the ATM cash deposit and withdrawal function in the industry to guide Shenzhen residents to adapt to the digitization of cash and explore service transformation.

Shenzhen’s Interest in the Digital Yuan High, Says Expert

Moreover, local experts are reporting positive progress from the digital yuan tests in the city. A comment from Song Qinghuim, a local economist quoted by SZ News, reads as follow:

The third station of the digital RMB pilot program returned to Shenzhen again, indicating that the market has recognized the city. Compared with the first pilot, there have been many changes, which indicates that the digital RMB project is progressing steadily.

The Shenzhen authorities and the PBoC are also preparing the ground to launch another $3 million digital yuan giveaway. They expect to make it possible before the Lunar New Year holidays (mid-February).

Recently, the People’s Bank of China approved a physical card-wallet pilot to test its digital yuan. Coffee shop staff in a Shanghai-based university hospital was chosen as participants in the pilot.

What do you think about the new digital yuan ATMs? Let us know in the comments section below.

China Launches Digital Yuan ‘Hard Wallet’ Card Pilot Program

10/01/2021 by Idelto Editor

The People’s Bank of China (PBoC) have green lighted a physical card-wallet pilot to test its digital yuan. Coffee shop staff in a Shanghai-based university hospital was chosen as participants in the pilot.

Wallet Card Can Pay or Accept e-CNY Without Wi-Fi or a Mobile Connection

According to Tencent News, staff members at Shanghai Jiao Tong University School of Medicine’s Tongren Hospital used the digital yuan token to pay for food. They used a point-of-sale device and a physical card with a small screen in the top right corner.

The card reveals how much digital yuan remains in the wallet. Local media reports claim that the Postal Savings Bank of China is in charge of providing technical support. The “hard wallet” allows staff to buy products such as a cup of coffee or snacks.

One of the photos featured in Tencent’s article also shows a hospital staff member holding a card with 144.75 yuan on it and three offline payments available. The latter feature allows people to pay or accept e-CNY transfers without Wi-Fi or a mobile network connection.

Digital Yuan Tests Still Taking Place in Several Chinese Cities

So far, the digital yuan pilot programs have been underway internally in Chinese cities such as Shenzhen, Suzhou, Xiongan, Chengdu, preparing for the Winter Olympics — an event which is still scheduled to take place in 2022.

Although local experts have warned that there is still “a long way to go” before the token can be fully launched, PBoC officials believe that the digital yuan could be launched before the Olympic event.

The central bank aims to attract as many domestic and foreign spectators as possible to use the digital yuan. The Chinese government’s plans points towards reducing dependence on the USD.

What do you think about the ongoing digital yuan tests? Let us know in the comments section below.

China’s Giant Ride-Hailing Service Didi to Pilot the Central Bank’s Digital Yuan

09/07/2020 by Idelto Editor

The Chinese government and the country’s central bank, the People’s Bank of China (PBoC), are currently in the midst of testing a digital yuan or central bank digital currency (CBDC). Now the Chinese ride-hailing corporation Didi Chuxing will be trialing the newly developed digital yuan in a “strategic partnership.”

Whether people want to believe it or not, the digital yuan is coming soon, and the PBoC has been steadily working on the project for years. Cryptocurrency enthusiasts have heard rumors about a digital yuan since 2014, but in 2020 that rumor is becoming more of a reality.

The last time news.Bitcoin.com reported on the subject, well known firms like McDonald’s, Starbucks, and Subway have been involved with testing the digital yuan. Additionally, those companies were joined by JD Supermarkets, Tencent, and Ant Financial. It was also rumored that Chinese government employees may soon be paid using the PBoC’s CBDC.

Now the ride-hailing giant Didi Chuxing has joined the PBoC and Chinese government officials behind the CBDC taskforce in a “strategic partnership.” The PBoC’s think tank will reportedly call the CBDC “DC/EP” (digital currency/electronic payment) and PBoC representatives have said that the DCEP experiment did very well during testing in Suzhou and the country’s Xiong’An shopping districts.

Didi Chuxing Technology Co is also at the forefront of the self-driving, ride-hailing car industry.

Didi Chuxing Technology Co, formerly named Didi Dache, is based in Beijing. In the recent DCEP partnership announcement, Didi refers to itself as “the world’s largest one-stop on-demand transportation platform.” The company with its founder Cheng Wei and 11,407 employees will be working directly with the DCEP project hands-on.

“Under PBOC’s overall DCEP strategy and operation timeline, Didi’s DCEP taskforce will design and implement pilot DCEP projects in accordance with rigorous safety, security, and governance standards,” Didi explained during the company’s latest announcement.

Didi Chuxing is vastly known as the “Uber of China,” and the company also offers ride hailing services in Latin America and Australia as well. The firm is valued at $56 billion to-date, and the company has roughly 550 million ride-hailing users across the globe.

The aim of Didi leveraging DCEP will help lay the foundations for the digital yuan. Despite recent testing with JD Supermarkets, Tencent, Ant Financial, Starbucks, Subway, and McDonald’s, the financial news outlet Bloomberg notes Didi Chuxing’s pilot “could be one of the first real-world applications of [DCEP].”

A representative from the PBoC said last April that the central bank hopes after the public beta testing completes, the bank can officially launch the digital yuan prior to the Beijing Winter Olympics scheduled for 2022. So far only a few other countries are in the midst of creating CBDCs, and just recently the U.S. has been discussing the “digital dollar.”

Sweden is currently working on an e-krona and Venezuela’s Socialist Party regime, run by Nicolas Maduro, minted the first nation-state issued CBDC called the “petro.” Despite the digital yuan being a rumor since 2014, it seems the Chinese central bank coin might just be the next nation-state cryptocurrency in line to launch.

What do you think about China’s DCEP working with Didi Chuxing? Let us know in the comments below.

The post China’s Giant Ride-Hailing Service Didi to Pilot the Central Bank’s Digital Yuan appeared first on Bitcoin News.

Digital Yuan to Fuel China’s Economic Reign – McDonald’s, Starbucks, Subway Test PBoC’s Cryptocurrency

24/04/2020 by Idelto Editor

China’s economy is the second-largest in the world and economists believe the country may someday bring a new global order and end the Western hemisphere’s financial rule. In 2020, various reports show that China’s central bank will soon release a cryptocurrency that represents a digital yuan. This week, regional reports show that 19 well known restaurants including Starbucks, Subway, and McDonald’s will be testing the bank’s virtual currency.

China’s Digital Yuan Is Becoming a Reality

Reports this week detail that the People’s Bank of China is making headway with its digital yuan testing. Rumors of China creating a digital yuan or a central bank digital currency (CBDC) have been happening since 2013. Four days ago, the PBoC confirmed the existence of a CBDC after a number of photos went viral on social media. The PBoC made a statement about the screenshots and explained that the bank was testing. “The rumored information on the internet is part of the test in our research and development process and it does not mean the digital yuan has been launched officially,” the PBoC said.

Now regional reports indicate that 19 popular restaurants and retail establishments will be testing the digital yuan. The financial news columnist noted that Tencent and Ant Financial participated as well as JD Supermarkets, Starbucks, Subway, and McDonald’s. Various Chinese lawmakers are experimenting with the test and there is testing happening in Suzhou and the country’s Xiong’An new district. In Suzhou, it is rumored that Chinese government employees may soon be paid using the PBoC’s CBDC.

Martin Jacques Novel ‘When China Rules the World’ Predicts the Rise of the East and the End of the West

With the petro-dollar on its last leg, many economists think that China will be the world’s economic superpower with very little peers. Market strategists think Russia will be involved with China’s rise as both countries have been participating in backroom deals to trade oil for other currencies and commodities. Moreover, economists believe the digital yuan will be an integral part of China’s role in developing economic superiority. British journalist and scholar Martin Jacques believes that “China’s future economic strength will heavily alter the political and cultural landscape of the future world.” The digital yuan will be called the “DC/EP” which stands for “Digital Currency Electronic Payment.”

“Today, China is the second economy in the world and the least dependent on oil prices,” explains the columnist Sergey Baloyan “While there’s no doubt that the dollar reigns supreme today, the digital yuan is China’s best chance to compete with the dollar on the global scale in the years ahead.”

What do you think about China’s DC/EP? Let us know in the comments below.

The post Digital Yuan to Fuel China’s Economic Reign – McDonald’s, Starbucks, Subway Test PBoC’s Cryptocurrency appeared first on Bitcoin News.

Deutsche Bank Envisions Post Covid-19 Economy Accelerating Digital Payments

09/04/2020 by Idelto Editor

Since the covid-19 outbreak wreaked havoc across the world’s economies, the global multinational investment bank Deutsche Bank has been encouraging the use of digital currencies. The firm’s Twitter account and macro strategist Marion Laboure have been tweeting regularly about how coronavirus infection risks could “accelerate digital payment systems across the world.”

Also read: 5% Over Spot: Gold-Backed Tokens Tether Gold and Digix Sell for Higher Premiums

Deutsche Bank’s Macro Strategist Envisions a Digital Payment Transformation Post Covid-19

The coronavirus is surely changing the way we look at things and how we operate in our everyday lives. For years now, society has been aware that physical currencies can be dirty and the covid-19 outbreak has exemplified this fact. Researchers have reported that paper currency can carry a higher number of microorganisms than your toilet. It has been said that the seasonal flu virus can survive on a banknote for roughly 17 days. These statistics have caused governments across the world to store notes in separate locations and even scrub them. Last month, the U.S. Federal Reserve was storing repatriated USD from Asia in a different location. The month prior, when covid-19 was ravaging China, the People’s Bank of China (PBoC) explained that repatriated yuan notes were being disinfected.

The recognition of the infection risk will likely accelerate the push towards digital payment systems across the world. #Cash #DigitalTransformation https://t.co/fGcJUbSYrR

— Marion Laboure (@MarionLaboure) March 21, 2020

Germany’s Deutsche Bank AG and the financial institution’s macro strategist Marion Laboure think trends like these will bring about a number of digital currency concepts. On April 3, the bank’s official Twitter account stated:

The covid-19 pandemic is accelerating the rise of central bank digital currencies as many governments see the handling of cash as a potential risk factor. This will likely add to calls to move towards digital cash according to our Deutsche Bank research colleague Marion Laboure.

The bank’s macro strategist Marion Laboure has been tweeting about the coronavirus accelerating the use of digital currencies and causing a “transformation.” “The recognition of the infection risk will likely accelerate the push towards digital payment systems across the world,” Laboure said. In a recent report called “The Covid-19 Cash Out,” authors Juergen Braunstein, Marion Laboure, and Sachin Silva wrote about a possible transformation.

“Because the hand-to-hand exchange of physical currency could transmit the coronavirus, countries around the world are being forced to reconsider the use of cash,” the researchers detailed. The report highlights that the authors can’t predict what will happen in a post covid-19 economy, but they can envision a new type of payment structure. “Digital versions of cash currency, such as Sweden’s recently announced e-krona, are promising examples of what could be in store,” the report concludes.

‘Digital Payments Could Rebalance Global Economic Power,’ Says Deutsche Bank Researchers

Various other tweets and reports by Laboure and the official Deutsche Bank Twitter account mention central bank digital currencies (CBDCs). The financial institution’s reports also talk about digital assets that exist today like bitcoin, e-wallets, stablecoins, the possibility of a digital yuan, and balancing the monetary system. Various quotes from the bank’s researchers stress things like “By 2025, e-wallets are expected to be the second-most preferred method of payment after cards – and the first among millennials” and how the “transition to digital payments could potentially rebalance global economic power.”

Of course, the bank is shilling CBDCs and stablecoin concepts that represent digital fiat reserves. These new digital systems would be no different than the digits citizens use today, except it would use a blockchain. It’s not very likely a CBDC will rebalance any power because it’s centralized. Society has already seen what modern central banks worldwide will do to the citizenry’s money over time. With cryptocurrencies like bitcoin, on the other hand, Satoshi created a financial system that is not controlled by a single entity, corporation, government, or central bank.

It might be small right now, but this is why the crypto economy is worth close to a quarter of a trillion U.S. dollars. People find value in cryptocurrencies that can give people financial privacy, censorship resistance, and allow them to transact in a peer-to-peer fashion. Deutsche Bank is right that physical banknotes are dirty but the financial incumbent’s digital transformation ideas are questionable, to say the least. Ever since the modern central bank was born and the many that followed after, the monetary system has been plagued with busts and booms.

What do you think about Deutsche Bank shilling digital currencies because of covid-19? Let us know in the comments section below.

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