PBoC Says Digital Yuan Tests Focus on Small Transactions After Rumored Property Sale

The People's Bank of China has apparently played down rumors of a house sale settled with its in-the-works digital currency.

Aug 24, 2020 at 9:47 a.m. UTC

Updated Sep 14, 2021 at 9:46 a.m. UTC

PBoC — People's Bank of China's headquarters in Beijing

China's central bank has apparently played down rumors of a property transaction settled with its in-the-works digital currency, saying that current tests only involve small transactions.

According to a report from Chinese news source Global Times on Monday, internet users had suggested a house sale had been conducted in the major city of Shenzhen.
The seller had apparently been paid with a large amount of the digital currency being developed by the People's Bank of China, but had not been successful in converting it into the traditional version of the currency.
Later, an employee at the central bank reportedly told news source Sina that trials of the digital currency are currently solely focused on smaller retail transactions and that scenarios involving larger-sized transactions are not yet being addressed.
The digital money is legal tender equivalent to fiat-based yuan and is 1:1 exchangeable with cash, they added.
The central bank digital currency (CBDC) is currently being trialed across a number of regions, with an expansion into cities like Hong Kong also announced in the last two weeks.
As well as banks, the CBDC is soon to be tested at companies including several within the Tencent group.

Also read: Chinese Ex-Banker Says Digital Currency Should Replace Fiat Money

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