China is making moves to undermine the reign of the U.S. dollar as the world’s reserve currency.
The country’s central bank has launched the Digital Currency Electronic Payment (DC/EP) pilot project in which 1.1 billion yuan (over 160 million USD) were processed through over 3.1 million transactions.
In keeping with this pilot, Chinese officials gave away 10 million digital yuans (approximately 1.5 million USD) to 50.000 residents in the tech-savvy city of Shenzhen last Friday. The lucky winners could spend the money at over 3,000 participating shops.
Other countries are also working towards this goal of widespread digital currency— last Thursday, the G20 declared it’s working with the IMF and the World Bank, among others, to create guidance for central bank digital currencies (CBDCs) for those countries. And Japan will soon be starting a trial with this currency.
China’s DC/EP trials are expected to continue well into 2022.
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