China continues its efforts to adopt the digital yuan (e-CNY). Only posted on Monday People’s Bank of China (PBoC) a corresponding wallet in the iOS and Android App Store.
According to local Chinese media BlockBeats The application is initially a pilot program, but it already enables basic functions. For example, users should be able to open a CNY e-wallet, store digital yuan, and occasionally transact.
App download is currently limited to eleven regions and cities: Shenzhen, Suzhou, Xiong’an, Chengdu, Shanghai, Hainan, Changsha, Xi’an, Qingdao, Dalian, and the site of the Winter Olympics.
China prepares test phase for Winter Olympics
With the launch of the pilot app, the Chinese government is taking final steps before the digital yuan is fully tested at the Winter Olympics. The PBoC announced plans in early April. In addition to citizens of the People’s Republic, foreigners should also be able to participate in the test.
The latter circumstance caused concern, for example in the US In a letter to the United States Olympic Committee (USOPC), several senators called for US athletes to be banned from participating in the test phase last July. Bitcoin attorney Cynthia Lummis was among the senators. More precisely it said:
Olympic athletes should be aware that the digital yuan is being used to monitor Chinese citizens and visitors on an unprecedented scale …
Letter to USOPC on Digital Yuan 0716
In early December last year, the diplomatic boycott of the White House followed due to human rights violations in the Middle Kingdom.
However, China is not impressed. On the contrary, more and more companies are being urged to adopt CBDC.
e-CNY expands the social credit system
Furthermore, critics see the introduction of the digital yuan as a perfect complement to the so-called “social credit system” in China. It is a data-based digital classification system that classifies and rates citizens, companies and organizations. Bad behavior is penalized, good behavior benefits.
With the e-CNY, the Chinese government now has another tool in its hands to enforce sanctions against disobedient citizens. In April, the implementation of an “expiration system” caused a stir, allowing the PBoC to validate and devalue the digital yuan at will. BTC-ECHO asked the Embassy of the People’s Republic to comment on this. However, the request went unanswered when it went to press.
Has China Banned Bitcoin Mining Due to e-CNY?
Meanwhile, there is still uncertainty about the reasons for China’s Bitcoin mining ban. Meanwhile, seven theories circulate within the crypto space that are supposed to explain Beijing’s rigorous approach. A mind game names the digital yuan as the main reason for the ban.
A representative of this theory is Lucas Nuzzi. about Twitter the crypto journalist wrote:
The CCP’s official Bitcoin ban in China comes as no surprise.
They are literally launching their own currency (a CBDC) that will allow mass surveillance and bank account closure of those who think differently.
Lucas Nuzzi on Twitter
Bitcoin got in the way of China because, as a decentralized currency, it simply does not allow the possibilities of “unbanking,” according to Nuzzi.
The cryptocurrency trading ban in September last year could be seen as one more indication in this context. It remains uncertain to what extent this reveals the motive behind the mining ban.
It is also unclear what the next testing phase at the Winter Olympics will look like and whether international athletes will participate in the paid experiment. In any case, the e-CNY is an Orwellian (nightmare) dream that will soon become a bitter reality for many Chinese.