Digital Yuan Momentum Enhances As More Chinese Companies Test It

The digital yuan momentum is increasing as the number of companies in China that are willing to test it is growing as well. Following the news in one of the best cryptocurrency news sites, we can find out more about this topic.

Despite the ongoing economic crisis and the heavy consequences of the coronavirus pandemic, the development of the Chinese national cryptocurrency, the Digital Yuan momentum is steadily progressing. The increase in the number of bigger companies that are joining the digital yuan initiative and start testing the technology is only strong evidence of the progress the project is making.

The largest wholesale and delivery platform for products Meituan Dianping became the latest corporation to agree to assist the people’s Bank of China is testing the initiative. The platform has almost 450 million customers and about 6 million companies that use this initiative to sell their products. Previously, DiDi Chuxing, the Chinese Uber branch with a client base of 550 million along with the streaming platform Bilbili which has a user base of 170 million, joined the testing of the China national digital currency.

The People’s Bank of China started selecting the first merchants for testing the digital currency and the list included many retail companies especially food and beverage ones such as McDonald’s. This choice can be explained by the fact that the users make transactions worth billions of dollars per day and the volumes can speed up the popularization and the adoption of the digital yuan. The total number of customers of the services is more than 1 billion located not only in China but  South America, Australia, and other countries too.

The companies will get a strong competitive advantage by becoming the first to introduce this technology and they will use it to facilitate remittances in a cheaper and faster fashion. The experiments showed that while it usually takes up to 45 days to complete a full cycle, using blockchain can reduce the time to two days. It’s still unclear how long the testing period of the digital yuan will last but given the number of China’s biggest companies, the testing phase is underway.

Testing the DCEP is being conducted in four cities: Xiong’an, Suzhou, Chengdu, and Shenzhen. The goal is to test the stability, availability, and process convenience as well as risk management. This is the first time that the regulatory authorities confirmed the dynamics of the transitional digital currency pilot project.