Suzhou to be pilot city for central bank digital cash

News follows leak of images of yuan-based CBDC

by Nadeem Xu
Suzhou to be pilot city for central bank digital cash
An image of China’s CBDC leaked to media recently. Photo: Chainnews

(ATF) China’s central bank is to begin rolling out its much-anticipated digital cash application in the eastern city of Suzhou, confirming reports that had occupied cryptocurrency media for months. 

The digital currency/electronic payment (DC/EP) will be distributed as a form of transportation subsidy to employees in the city’s Xiangcheng District next month, according to the Science and Technology Innovation Express News Thursday.

Xiangcheng District will require employees of administrative units in the district to install digital wallets this month and will distribute 50% of the transportation subsidy in May through the cryptocurrency.

Sources said that the Agricultural Bank of China is conducting an internal survey on central bank digital cash, with Shenzhen, Xiong 'an, Chengdu and Suzhou as pilot cities.

Chinese media recently published leaked pictures of an e-wallet believed to be the central bank digital currency (CBDC). Such e-coins are being considered by central banks the world over.

Reports said that China’s will not be backed by a blockchain, the decentralised ledger technology on which cryptocurrencies such as bitcoin are based