PBOC moves closer to issuing digital currency

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 issue its own digital currency, Caixin reports. 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 – a secure digital ledger that records online transactions. The central bank’s digital acceptance exchange and currency system were put in place and connected for the test run with several commercial banks, including the Industrial and Commercial Bank of China, Bank of China and the private WeBank, the sources said. In response to the creation of the Internet currency Bitcoin, Chinese monetary authorities have stepped up efforts to develop a government-backed sovereign digital currency.