What’s new: China’s central bank has included 11 new cities in its digital currency pilot program, according to an official statement released Saturday.
The 11 cities are Tianjin, Chongqing, Guangzhou, Fuzhou, Xiamen and the six cities in Zhejiang province that will host the 2022 Asian Games — Hangzhou, Ningbo, Wenzhou, Shaoxing, Jinhua and Huzhou, the People’s Bank of China (PBOC) said.
As the pilot has progressed, the central bank said that problems with the digital currency have emerged, including issues related to convenience, security and compliance, so further research is needed.
The background: The PBOC began exploring how to use the digital yuan in 2014. It was one of the first major central banks to test out a digital currency.
The latest move marked the third time that the PBOC has expanded its trial program for the digital yuan. Currently, the trial has taken place in Shenzhen, Suzhou, Chengdu, Xiongan, Shanghai, Hainan, Changsha, Xi’an, Qingdao, Dalian, and Beijing and Zhangjiakou, the two cities which co-hosted the 2022 Winter Olympics and Winter Paralympic Games.
Related: In Depth: China’s Digital Currency Ambitions Lead the World
Contact reporter Tang Ziyi (ziyitang@caixin.com) and editor Michael Bellart (michaelbellart@caixin.com)
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