Visitors at the booth of Digital Currency Institute of the People's Bank of China during the China International Fair for Trade in Services on Sept 6. (Photo/Zhan Min for China Daily)
From shells and gold to metal coins and paper, forms of currency have been evolving alongside economic advancement. Nowadays, sovereign digital currency is increasingly attracting the attention of central banks worldwide.
The new currency form refers to central bank-issued digital money－a new variant of central bank money distinct from physical cash or central bank reserve account monies.
It has become a new arena that financial movers and shakers worldwide are eyeing as a way of restructuring the international settlement system. According to a survey released earlier this year by the Bank for International Settlements, 80 percent of central banks globally are engaged one way or another with digital currencies.
China also recently lifted the veil on its sovereign digital currency regime during a large-scale digital yuan test in Shenzhen, Guangdong province.
Through the trial program started in mid-October, a total of 10 million yuan ($1.49 million) of digital renminbi was distributed to 50,000 users in the form of "red envelopes". The new currency could be tried out at more than 3,000 businesses such as restaurants, supermarkets, gas stations and barber shops. From Oct 12 to 18, more than 62,000 digital yuan transactions were made.
The People's Bank of China, the central bank, started researching sovereign digital currency as early as 2014. So far, Shenzhen; Chengdu, Sichuan province; Suzhou, Jiangsu province, and the Xiongan New Area, Hebei province, have been approved for internal tests, along with pilot implementations during the 2022 Winter Olympics.
Blockchain technology 区块链技术
international settlement system 国际结算体系
Collected and edited by Lv Yun
Source: China Daily