China Ready to Launch Its Digital Renminbi

World wide implications?

Technology Review:   Chain Letter: MIT Technology Review
Blockchains, cryptocurrencies, and why they matter

12.12.19
Chain Letter from MIT Technology Review
#174: The next steps in China’s digital currency road map have been revealed

China may be just about to launch its digital renminbi in two cities. The People’s Bank of China is planning a real-world pilot of its digital currency, the first phase of which could begin before the end of this year, according to a report from an influential Chinese financial news publication. That would support recent speculation that China is on the verge of becoming the first major economy to issue sovereign digital money.

In August, an official from the PBOC said the currency, which China has been developing for several years, was “close” to being issued. The new report, from the financial news outlet Caijing, outlines specific next steps. It says the PBOC could launch a small-scale experiment in Shenzhen before the end of the year and then scale it up in 2020. In addition to Shenzhen, the pilot will take place in the eastern city of Suzhou, according to Caijing. If the tests go well, presumably the currency will go live soon afterward.

The Caijing report seems to confirm several details about the forthcoming currency system, called digital currency electronic payment (DCEP), that have appeared in news reports during the past several months. For instance, it confirms that the PBOC will partner with commercial banks to issue the currency, and that during the initial phase the banks will compete on how best to implement it. It says tests will likely include seven state-owned firms: the four largest commercial banks and three big telecom companies. According to the news report, the tests will involve real-world service scenarios in the areas of transportation, education, and medical treatment.  .... "   Full report. 

China About to Issue its own Cryptocurrency

Wondering the broad implications of this.   Will it embody regulations that will determine how it will be traded versus other currencies?   Or use smart contracts to determine trade contacts?  Or?  Overall very hard to determine how a complex system like this will influence global finance.

Not even clear if it will use a blockchain, and what its format and update method will be.  Private or not?  Worrisome.

Below an excerpt, with many more links:

In the latest Chain Letter, by MIT Technology Review: 

Welcome to Chain Letter! Great to have you. Here’s what’s new in the world of blockchains and cryptocurrencies.   ... 

China is about to launch its own digital currency. Here’s what we know so far. Officials from the People’s Bank of China have hinted in recent weeks that the nation is almost ready to launch a digital version of its currency, the renminbi, to replace physical cash for consumer payments. There are a number of unanswered questions about how it will work, ranging from whether it will use a blockchain to how private the system will be. Despite the unknowns, recent public comments by central bank officials have shed some light on the timeline for and motivation behind the project. Here’s a trio of things we know:  .... " 

(UPDATE 9/26/2019 ....   From the latest chain letter resource,  no specific date has been provided for the release of the currency,  they are apparently still studying possibilities and how to regulate)