China’s digital currency, DCEP’s, also called digital Juan or e-CNY, will be tested in the Beijing subway. The Asian giant launched crackdown on the cryptocurrency sector last month and appears to be preparing for the next big step in its DCEP project.
Tests of digital yuan in the subway and railways
The digital yuan will be used with a QR code mechanism to pay for entry and exit from this transportation system.
Chinese users can download an application from the Beijing government connected to the China Industrial and Commercial Bank and activate the digital yuan service. The test will take place on the city’s 24 metro lines and 4 suburban railways.
Following this testing phase, the Beijing Metro will continue to support the use of the digital yuan in several cases, such as ticket sales. DCEP will be used to improve the travel user experience.
In a separate report, former Japanese top financial regulator Toshihide Endo believes the digital yuan will have a direct impact on the dynamics of the global economy. Specifically, Endo said other countries may feel pressure to increase their efforts to run their own CBDC.
How the digital yuan will affect the global economy
If the CBDC is launched, China will be armed with a vast social infrastructure. It would be difficult for other nations to ignore. Japan and other developed countries will face the difficult question of whether and how quickly they should follow.
The People’s Bank of China (PBoC) is far ahead of its counterparts in Asia, Europe and the United States. While Japan launched its CBDC project in April, the European project seems to lack a unified direction and the US is still discussing the benefits of digital assets.
China has already caused a stir at the crypto market. The Asian giant decided to drive out the vast majority of BTC miners. As a result, the hashrate of this network, according to data provided by Blockchain.com, dropped to a one-year low.
In addition to relocating operations from China, miners are increasing sales pressure in the market. The price of BTC (BTC) has seen several sales in recent weeks.