Four Chinese banks are conducting full-scale testing of a digital yuan app and wallet from the People’s Bank of China (PBOC), according to local media reports.
We are talking about large commercial banks with state participation: Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank, which began testing a digital wallet and other services required to work with the state stablecoin.
Given that the Digital Currency Electronic Payment System (DCEP) is under the leadership of the NBK, many commercial banks are interested in this initiative. Most of the testing has been going on in Shenzhen for several months now to prepare for the official launch of the digital yuan.
Local journalists managed to find out from bank employees that the digital yuan application will not be open for widespread use for some time. To gain access, the user will have to enter an identification code. Banks have already started using this application to make payments and money transfers. However, in the future, the application will be available to all clients of banks participating in the testing of cryptocurrency from the NBK. To do this, the user needs to create a digital wallet that will be tied to bank accounts, which will allow them to make a deposit to this wallet and withdraw funds from it.
The interface and logic of the digital yuan app will be similar to the Cloud QuickPass app from China UnionPay. With its help, users will be able not only to deposit and withdraw money, but also to make money transfers, as well as scan codes for making purchases and payments. This requires only a mobile phone number, without the need for a network connection.
Recall that in April, the Central Bank of China began testing the payment system of the state digital currency in four Chinese cities: Shenzhen, Xiongan, Suzhou and Chengdu. In addition to commercial banks, Starbucks and McDonald’s catering chains took part in the testing .