- Digital Yuan has its second trial run in Shenzen Province.
- The state-owned Agricultural Bank of China backs testing.
- Users will be able to make conversions from cash to digital Yuan seamlessly.
According to reports, bank user’s in Shenzen will now have access to Digital Yuan ATMs. This update is in line with recent actions by the Chinese government to normalize it’s digital currency. Testing has started in Shenzen and approximately four cities so far. In Shenzen, these came in the form of traditionally wrapped gifts referred to as red packets. These red packets were reported to have been distributed via lottery. Other cities where testing occurred are Suzhou, Xiong’an, Chengdu.
Digital Yuan week-long trial in Shenzhen
The last week-long trial took place in October. Reports indicate that during the trial run, the Chinese Central Bank spent approximately $1.3 million. These figures translate to over 8.8 million Digital Yuan spent on consumers in the Luohu district. Before the week-long trial, Digital Yuan valued at $3million was distributed to Shenzhen residents. The distribution was done in a bid to integrate bank users with the state-backed digital currency.
Features of the Digital Yuan
Resident bank users will have access to the Digital Yuan in selected Shenzen branches. They will be able to exchange their bank savings or stored cash for the digital currency and vice-versa. With the use of smartphones, bank users will also be able to access deposit and withdrawal options.
Overall, previous runs yielded a value of transactions worth over $300 million worth. This amount was accrued during the past few months. The third trial run’s launch indicates that the state-backed currency might be released to the public soon. However, according to reports, no official date has been chosen for an official launch.