Beijing, Shanghai to Join Wider Testing of Digital Yuan in 2021

China's biggest cities are planning to hold pilots to promote the use of the country's central bank digital currency (CBDC) this year.

• According to a report from Chinese state media outlet Global Times on Sunday, Beijing's mayor said the nation's capital will hasten development of "demonstration zones" for fintech and professional services over 2021.
• That effort will include promoting a pilot application for the CBDC, officially called Digital Currency Electronic Payment (DCEP).
• Shanghai's mayor made a similar pledge to promote the digital currency, per the report.
• In Guangdong Province, authorities are to support Shenzhen's development as an "innovative pilot zone" for the digital yuan, its governor said.
• All three statements were made on Sunday
• Shenzhen has just announced its third trial of DCEP, allowing the public to get its hands on the electronic cash via lottery-like giveaways.
• The report cites "industry observers" as saying the announcements mark a bigger push to promote the digital currency before a launch in the "near future."

See also: Chinese City Plans Third Digital Yuan Pilot, Giving Away $3M in Prize Draw