Chinese banks start testing service for storing digital yuan

by in Cryptocurrency News

China

Several Chinese state-owned banks have begun testing a digital yuan storage and transmission service (CBDC).

According to Reuters, the crypto wallet is being tested in major cities of the Middle Kingdom, including Shenzhen. Earlier it became known that the People's Bank of China has completed the formation of the primary infrastructure for operations with the token.

It is believed that the digital currency of the Middle Kingdom will act as a chief competitor to the US dollar in the Asia-Pacific region.

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The details of testing the application were not disclosed, and the list of banks that take part in testing the wallet is also unknown. It is only known that credit organizations will check the compatibility of their transaction processing systems with the application not only when sending tokens from one wallet to another, but also when paying for goods and services using CBDC.

Earlier it became known that the People's Bank of China wants to use the digital yuan to combat the dominance of such tech giants as Alibaba and Tencent.