The People's Bank of China is taking steps to expand its digital yuan project, starting with the free trade zone.
On Friday, June 4th, officials from the People's Bank of China announced an expansion of financial innovations related to Shanghai's free trade zone. In particular, this includes a wider application of digital origin.
Ji Min, head of PBOC's research bureau, said the country will expand its “Shanghai model” and “deepen financial openness and innovation” within the zone. At the same time, the central bank will apply these policies to other free trade zones across the country.
Specifically, China will promote the use of digital yuans within these zones. Additionally, the country is taking steps to optimize electronic payment systems across the country. However, PBOC has not yet announced official plans for the nationwide deployment of the digital Original.
This move is consistent with broader policy trends. At the recent Lujiazui forum, regulators also discussed expanding pilot projects to additional regions.
You might like it too: China, Kazakhstan Central Bank is forgerying CBDC Research Partnership
Expanding Chinese Digital Origin
Currently, China has 21 free trade zones, mainly located in coastal provinces such as Shanghai, Fujian and Hunan. These zones provide favorable incentives for foreign investors and provide simplified procedures for obtaining business permits.
It also serves as a test ground for regulatory innovation, including central bank digital currencies. Regulations that are often tried in these zones are later adopted nationwide.
By 2024, the digital Original will be registered to more than 7.3 trillion yen (approximately $1.02 trillion) in transaction volume across the pilot region. Additionally, over 180 million individual wallets have been created. Early testing has begun in major cities such as Shenzhen and Beijing.
You might like it too: Is Crypto banned in China? The complete history of Chinese cipher bans
