On August 14, 2020, the Chinese Ministry of Commerce issued a notice that China will launch a digital currency pilot program in some “qualified regions”… It was also recently reported that digital RMB will be utilized in Hong Kong.
The Chinese CBDC is said to be a bit of a hybrid utilizing blockchain in part but not entirely for the digital currency. China believes a digital RMB may emerge as a preferred alternative to physical cash.
China is one of many countries around the world that is investigating and experimenting with CBDCs. The digital currency is expected to streamline payments and transfers of money, while reducing cost, but some observers believe there are intrinsic challenges to a digital currency that may provide unparalleled monitoring into utilization by a government while undermining the need for retail banks.