The People’s Bank of China is testing a blockchain-based digital currency

FinTech | January 30, 2017 By:

The People’s Bank of China (PBOC) completed a successful trial run of a digital bank acceptance exchange, moving closer to becoming the first central bank in the world to research and test its own blockchain-based digital currency.

According to sources from the PBOC, the central bank on Dec. 15 completed the trial in transactions and settlements of bank acceptance bills using a digital currency it developed, supported by blockchain technology.

The test was reportedly held in conjunction with major domestic commercial banks including Industrial and Commercial Bank of China (ICBC), Bank of China and WeBank.

Elsewhere, the report went so far as to suggest the pilot digital currency could be connected to the Shanghai Commercial Paper Exchange, forming a “national platform for bank bill transactions”. In conjunction, the PBOC will also establish a digital currency research institute for which it is seeking experts in big data, cryptography and blockchain tech.

In an interview with Caixin in February 2016, central bank governor Zhou Xiaochuan highlighted his interest in the development of digital currency and the Blockchain technology. In July last year, the central bank kicked off the research on a demo platform for a bank acceptance exchange based on the technology.