China’s Central Bank, People’s Bank of China (PBoC) is planning to look into building a digital central bank infrastructure to improve the standards of financial services in the country. On May 18, the Chinese Central Bank’s 2020 video conference on scientific and technological work was held in Beijing.
The meeting emphasized that due to the coronavirus pandemic highlighted the urgency for financial digital transformation in China. A three-year FinTech development plan was set out for the country in August 2019, and 2020 has entered its second year. The development of blockchain, internet of things (IoT), big data, and other innovative business models will also be expected to drive the digital transformation of the financial industry and promoting financial technology in the country.
China has also taken an ambitious step to “maintain its leading position in digital currency technology,” as it remains the central bank’s current top focus.
Although China makes recognizable efforts in the development of its central bank digital currency (CBDC), also known as digital currency electronic payment (DCEP), it is acknowledged that mass adoption will still take some time.
DCEP has been reportedly close to its launch, but local government employees in the Chinese city of Suzhou will be receiving the digital currency this month, as the country is charging full speed with the development and subsequent launch.