Digital Yuan Trial Hotspot Not Seeing Wide Acceptance, Claims Report – Altcoins Bitcoin News


Digital Yuan Trial Hotspot Not Seeing Wide Acceptance, Claims Report

With digital yuan pilots underway in China, it seems the currency is not meeting government expectations. A recent report highlighted a series of interviews from people in the hotspot, reflecting a lackluster reception among the participants.

Privacy Concerns Reported

According to Bloomberg, residents in Shenzhen, the Chinese analog to Silicon Valley, have shown little interest in the central bank’s digital currency (CBDC), primarily citing privacy and surveillance concerns.

The People’s Bank of China (PBoC), the country’s central bank, has been accelerating the pilots to prepare the digital yuan for the 2022 Winter Olympic Games. People have been hesitant to switch from existing mobile payment solutions, showing an attachment to WeChat and Alipay. One participant in the 500,000 person pilot sample told Bloomberg she was “not at all excited” to be included. Another worried the pilot would allow authorities to “trace every payment”, and called the currency “a little scary”.

Will the Digital Yuan Settle for Domestic-Only Acceptance?

Li Bo, the PBoC governor, pointed out that the digital yuan isn’t aimed to replace the US dollar. Instead, the government targets to make it widely used for domestic purposes.

Bo’s statements are a departure from the generally optimistic tone taken towards the currency’s global potential. However, it is now clear that the government faces steep challenges to attracting even domestic users. Prying them from an entrenched Tencent and Antgroup financial infrastructure, regardless of the currency’s international reception, may be more difficult than originally thought.

Tags in this story
CBDC, china digital currency, chinese digital currency, Digital Currency, Digital Yuan, PBOC, Privacy, shenzhen, wallet privacy

What are your thoughts on Bloomberg’s report about digital yuan? Let us know in the comments section below.

Felipe Erazo

Born in Colombia, Felipe earned a degree in journalism at the University of Chile with the highest honor in the overall ranking and holds a Bachelor of Arts in Social Communication. He is a writer with more than nine years of experience, first in the Forex field and later in the crypto industry as an analyst/news junkie. Among his interest topics include human rights, decentralization, financial markets, geopolitics, sports, and new technologies. An inveterate traveler, and always attracted to a good plate of food.

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