China: First Country to Implement Digital Currency

Thursday 30th of April 2020

China: First Country to Implement Digital Currency

China is working to be the first nation to implement a total central-bank digital currency into limited use. In recent months, China’s central bank has stepped up its development of the e-RMB, which is set to be the first digital currency operated by a major economy.

Trials have begun trials in several cities, including Shenzhen, Suzhou, Chengdu, as well as a new area south of Beijing, Xiong’an, and areas that will host some of the events for the 2022 Beijing Winter Olympics, writes the Guardian.

According to China Daily, it had been formally adopted into the cities’ monetary systems, with some government employees and public servants to receive their salaries in the digital currency from May. Further, sources reveal that currency would be used to subsidize transport in Suzhou, but in Xiong’an the trial primarily focused on food and retail.

While making it safe during the COVID19 pandemic, the central bank will be able to monitor cash flow. “Although there is little change from the perspective of user use, from the perspective of central bank supervision, future forms of finance, payment, business and social governance etc, this is the biggest thing ever,” says Xu Yuan, associate professor at Peking University’s national development research institute.