PBoC Says Digital Yuan Tests Focus on Small Transactions After Rumored Property Sale

The People's Bank of China has apparently played down rumors of a house sale settled with its in-the-works digital currency.

AccessTimeIconAug 24, 2020 at 9:47 a.m. UTC
Updated Sep 14, 2021 at 9:46 a.m. UTC

China's central bank has apparently played down rumors of a property transaction settled with its in-the-works digital currency, saying that current tests only involve small transactions.

  • According to a report from Chinese news source Global Times on Monday, internet users had suggested a house sale had been conducted in the major city of Shenzhen.
  • The seller had apparently been paid with a large amount of the digital currency being developed by the People's Bank of China, but had not been successful in converting it into the traditional version of the currency.
  • Later, an employee at the central bank reportedly told news source Sina that trials of the digital currency are currently solely focused on smaller retail transactions and that scenarios involving larger-sized transactions are not yet being addressed.
  • The digital money is legal tender equivalent to fiat-based yuan and is 1:1 exchangeable with cash, they added.
  • The central bank digital currency (CBDC) is currently being trialed across a number of regions, with an expansion into cities like Hong Kong also announced in the last two weeks.
  • As well as banks, the CBDC is soon to be tested at companies including several within the Tencent group.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

2
CoinDesk - Unknown
Vitalik's Mom Offers Advice on How to Make It in Crypto

“You need to have a lot of perseverance and a lot of patience,” she said in an interview for CoinDesk's "Future of Work Week."

CoinDesk - Unknown
3
CoinDesk - Unknown
Do Rate Hikes Matter? Bitcoin Traders Learn How Fed Moves Markets in Twitter Era

The Federal Reserve has become a big believer in forward guidance over the years, starting with Ben Bernanke. But the central bank under Jerome Powell has taken transparency to a new level.

CoinDesk - Unknown
4
CoinDesk - Unknown
Grayscale’s Legal Battle Against the SEC

The lawsuit was filed after the SEC rejected the company’s filing to convert GBTC to a spot bitcoin exchange-traded fund.

CoinDesk - Unknown