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China starts testing its state crypto

La People’s Bank of China (PBoC) is organizing the test phase for the state digital currency. A highly anticipated event, after the announcements of the past months and which will have as its epicenter the cities of Shenzhen e Suzhou. From the news leaked so far, seven state-owned companies, four commercial banks and three telecommunications giants would be involved in the experiment. While the sectors concerned would be education, medical assistance, trade and transport.

A real race against time

By now from 2014 announcements related to the will of the Chinese government to launch its own DCEP (Digital Currency Electronic Payment) and consequently the news relating to the Shenzhen and Suzhou tests are not surprising. It should also be underlined that in the first one a low-scale project is already operating, which should be extended in the course of 2020 and that in the second it became known during the month of November that a PBoC-supported fintech company was looking for experts blockchain e crypto, obviously to be used for the implementation of the tests.

What the project foresees

The planned tests should outline a very precise modus operandi. In practice, commercial banks could obtain digital currency from the Chinese central bank by depositing the RMB reserve, while companies and private users should register their e-wallet so that you can use the new digital currency in your transactions. Further details are missing, but the experts agree on the procedure that would be used during the two pilot projects.

Why is China speeding up?

Of course, the acceleration impressed by Beijing prompted analysts to question the reasons behind the decision. In particular, the coincidence with the news that the European Central Bank would like interested in its own virtual currency in the event that cross-border euro payments continue to denote speed and convenience issues.
It should also be remembered that the France, once very skeptical about the validity of digital assets, has for its part impressed a strong acceleration towards the digitization of the currency. He was in particular the governor of the French central bank Francois Villeroy de Galhau to recently reveal the start of a project in this sense, which should characterize the first months of 2020.

China is betting strongly on innovation

Ultimately, the decision of the China however, it did not overly surprise the experts. The eastern giant, in fact, has long since started with decision on the path of innovation. This is demonstrated not only by the decision regarding its digital state currency, but also by the increasingly strong attention towards the blockchain. Right there ChinaIndeed, it is the country where the most patents of the new technology have been registered, considered by many to be the Internet of the future and which sees the largest number of companies engaged, on a global level.
Beijing's intention to move decisively in an area considered strategically very important seems therefore evident. On the other hand, many analysts have asked why the United States is not following the same path and, indeed, they are lingering in a ostracism against Libra which seems to indicate precisely in the new creation of Facebook the enemy to be killed at all costs.

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Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

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