© Bloomberg. President Xi Jinping’s speech in Shenzhen airs in a Hong Kong store on October 14.
The trial shows that “they are ready for the full launch of its digital currency very soon,” said Charles d´Haussy, who heads the Hong Kong office of blockchain engineering firm ConsenSys.
China is increasingly a cashless society – pancake vendors in small towns preferring digital wallets to rustling to make change – but the DCEP is designed to prevent the country from ever having to adopt a standard, like the one in the dollar, which is controlled. by others. Designed to replace cash over time, it will also help Chinese regulators better understand the country’s money supply.
Users need to create a dedicated account for DCEP transactions using their local mobile phone numbers and download a wallet app linked to one of China’s Big Four State Banks. Merchants and buyers can then scan each other’s QR code generated by the app for transactions. The app shows a portrait of Mao Zedong on a page where users check their balances, similar to the physical 100 yuan banknote.
“I will consider making this my first option over WeChat or Alipay, since it is state-backed,” said Wang Jinchao, a 27-year-old user growth manager with a startup company. Shenzhen online learning, which was among the least 3% of the lucky applicants to win the DCEP document.
Along with testing with end users, the central bank is partnering with tech giants like Meituan and Didi Chuxing to explore applications for services like food delivery and hail that could drive acceptance.
Lin Song, a 42-year-old telecommunications engineer in Shenzhen, spent the 200 yuan DCEP he earned to go to a gas station. It’s as easy as using any other payment method, he says. “It’s really which platform has the biggest promotions and connects more merchants so that I decide which one to stick with,” he says.
© 2020 Bloomberg L.P.
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