China started second phase of digital yuan testing

by in Cryptocurrency News

Digital yuan

The updated financial infrastructure of China and Hong Kong will be based on the digital version of the yuan (CBDC). The parties have already started the second stage of testing this tool, local media reported.

Recall that the largest banks and IT companies from the Middle Kingdom also take part in the tests of the token. According to Mu Changchun, who heads the Digital Currency Institute of the People's Bank of China, the second stage of CBDC testing has recently started with the participation of the financial systems of the Middle Kingdom and Hong Kong.

The goal of this phase of testing will be to integrate the payment infrastructure of the metropolis into the fast payment system (FPS). The Central Bank expects to facilitate the conversion of the digital yuan into Hong Kong dollars so that token holders can make purchases in the city without any problems, the official said.

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Note that a similar project is being implemented under the auspices of the Bank for International Settlements (BIS). We are talking about the creation of the mBridge platform, which should unite the financial systems of not only China and Hong Kong but also Thailand and the United Arab Emirates. However, it is not yet known which digital instrument this ecosystem will be based on.