(Rejected)Subway, Starbucks, McDonald’s And Other Brands Could Take Part in China’s Central Bank Digital Currency Tests
Chinese publication InterChain Pulse reveals that some of China’s digital currency tests will involve entertainment, retail, and catering outlets, including branches of Subway, Starbucks, and McDonald’s. The local media publication states that it was exclusively notified about a “pilot promotion meeting” of the digital yuan conducted in the city of Xiong’an New Area located close to Beijing. Merchants, digital currency developers, and government agencies participating in the forthcoming pilot tests were invited.
More Tests Target Retail Firms in Xiong’an New Area
The Reform and Development Bureau of Xiong’an New District Management Committee is involved in the digital currency electronic payment (DCEP) test, and therefore organized the promotion meeting. Several pilot merchants, digital research, and development institutions were invited to participate.
McDonald’s, Subway, and Starbucks were among the list of various firms in the retail industry invited. Thus, suggesting that these retail giants will be the first merchants to test the digital yuan currency. The list also includes several catering firms, supermarkets, hotels, baozi street food vendors, bookstores, and others.
Other participants include employees from the Xiong’an branches of four leading commercial banks – the Agricultural Bank of China, the Industrial and Commercial Bank of China, the China Construction Bank, and the Bank of China, and also representatives from Baidu, Alibaba Group, Huawei, Tencent, and others.
According to the report, pilot programs in the city of Xiong’an New Area are mainly targeting retail and food companies. On the other hand, trials in Suzhou city are majorly focusing on local government employees, as the Blockchain.News reported last week. Xiong’an is a new city, which is heavily under construction, and it is expected to take some functions of Beijing capital city.
The new city is one of the four districts previously identified to be part of the pilots. Since it is a new district, Xiong’an New Area is being designed as a smart city. Therefore, carrying out extensive pilots in the city makes complete sense.
China’s Central Bank Says Digital Yuan Will Not Raise Inflation
In recent weeks, many new developments have emerged concerning China’s Central Bank Digital Currency. China’s central bank has been silent and secretive when it comes to the testing of its national digital currency, which has piqued the curiosity of its citizens. A representative from the central bank responded to such public curiosities and explained how the digital currency would function. The representative confirmed that some state-owned banks were carrying out internal tests of the digital currency in four cities – Suzhou, Chengdu, Shenzhen, and Xiong’an New Area.
The central bank’s spokesperson said that the digital currency is an organized system that functions so well to prevent any inflation because it is staked to the traditional fiat currency at a 1:1 ratio. The representative further disclosed that the digital yuan could be used in the 2022 Winter Olympics event; therefore, giving a hint of possible launch by mid-2021. The representative further mentioned that the digital yuan is progressing smoothly, and its top-layer design has been completed.