Rumours State Starbucks and McDonald’s Might Be Testing China’s CBDC Testing China’s CBDC - Just recently, it was reported that China was testing
Rumours State Starbucks and McDonald’s Might Be Testing China’s CBDC
Testing China’s CBDC – Just recently, it was reported that China was testing its CBDC in four cities. The test is one of the firsts in the entire world. According to Chinese officials, these tests are merely trials and won’t affect the real system. On the heels of this news, another exciting piece of information has emerged from the country. It has been rumoured that Starbucks and McDonald’s are a part of the pilot too.
If this is true, this means that things are moving faster than we had anticipated. These two companies are industry heavyweights. They have millions upon millions of customers. Using them in the trial could really test the robustness of the Digital Yuan. The tests involving the company haven’t started yet though.
Trial Run In Xiong’an
Recently, it was reported that four cities are going to test the Digital Yuan. The four cities are Shenzhen, Chengdu, Suzhou, and Xiong’an. The test with the above-mentioned companies is set to happen in Xiong’an. Recently, a promotional conference was held in the city.
Different government agencies, digital currency developers, merchants, and local branches of the People’s Bank of China (PBoC) were present. It is well-known that PBoC is developing the Digital Yuan. The proposed operators of the CBDC were also invited. The companies responsible for Alipay and WeChat were also present.
Of special note were participants from the retail industry. Many companies in the food and beverage business were seen at the event too. Representatives of hotels, bookstores, and supermarkets were also present. Among these were Starbucks and McDonald’s as well.
The congregation of so many regulators and industry players point towards the trial run of Digital Yuan in Xiong’an. Also, the city’s Smart City program is ongoing. It only makes logical sense that they want to start things off with a truly digital currency. The city of Xiong’an is a new one that is still being constructed. This new test will give it the opportunity to quickly rise to the top.
Sooner Than Expected?
China moves at an incredible pace. Its rise in the past few decades is proof of that. When it comes to cryptocurrencies, they have generally had a negative stance. Although, they haven’t outright banned them. That’s why bitcoin mining is really huge in the country.
Although China sees public cryptocurrencies unfavourably, they see potential in a Central Bank Digital Currency (CBDC). They have been researching one for many years now. Rumours had suggested that they could launch their CBDC in 2019. However, it seems like it will still take some time.
In any case, China’s test with Starbucks and McDonald’s suggests that they are moving quickly. If these tests are successful, they could launch their digital currency sooner than expected. They are already well ahead of the rest of the world. It wouldn’t surprise the industry if they become the first country to launch a CBDC. This will launch a digital currency race among other countries.