Bank of China to try digital currency system

The People’s Bank of China (PBOC) has completed a successful trial run of a digital bank acceptance exchange, moving it closer to becoming the first central bank in the world to research and test its own digital currency, according to media agency Caixin.

Citing sources from the PBOC, Caixin claims the central bank on December15 completed the trial in transactions and settlements of bank acceptance bills using a digital currency it developed.

The tests were run with the participation of several commercial banks, including the Industrial and Commercial Bank of China, Bank of China and the private WeBank.

PBOC plans to set up a digital currency research institute next.

When the system is ready, the central bank’s pilot digital bank acceptance exchange platform will be connected with the existing Shanghai Commercial Paper Exchange to form a national platform for bank bill transactions, said a person close to the central bank.

The PBOC has inferred before that China’s digital money will enter circulation alongside traditional paper bills.

Read Also: