The Chinese state bank is testing the mobile app for its digital currency

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The Bank of Agriculture of China would test a mobile application to process payments using its own digital currency and platform, known as DC / EP (Digital Currency / Electronic Payment) or “digital yuan”, which is already under development national blockchain based.

In social networks spread Images of the app were downloaded this Tuesday and were available for download to users in the cities of Shenzhen, Xiongan, Chengdu and Suzhou. Hours later, the link to get the application was deactivated, according to users. CryptoNews tried to enter the URL, but was no longer available.

One of the first people to distribute the pictures was Ling Zhang, a Binance executive who said through her Twitter account:

“It seems that the wallet test application is now available for download. Four cities are available for the test, including Shenzhen, Chengdu, Suzhou and Xiongan, “he said.

Screenshots show multiple menu screens with options how it would work with the digital currency, which would be anchored 1: 1 with the local currency renminbi (RMB), also known as yuan. In summary, it would be the potential use of digital currencies that would be supported by the Chinese central bank or the central currencies of the central bank or CBDC for their acronym in English.

The Chinese government is accelerating testing with its digital currency due to the quarantines in its territory due to the expansion of the coronavirus pandemic and COVID-19 infectious disease.

Start of the blockchain network

This Wednesday, it was also reported that China would launch its national blockchain platform called Blockchain Services Network (BSN) on April 25, a project funded by the local government to develop applications using distributed accounting technology (DLT) or blockchain implement reduce costs and speed up operations.

The network would already have nearly 100 operating nodes, but talks were already being made to increase the number to 200 nodes.

Two weeks ago, CryptoNews reported that China hoped to launch its blockchain-based service network in April Project originally announced in October last year that would have been a response to the Facebook moveto enter the world of cryptocurrencies with its Libra Association and, in the case of China, be the first country to issue its own digital currency.

China takes a dual approach to blockchains and cryptocurrencies such as Bitcoin. With the former, the government has announced that it will continue to develop the technology at all levels, while the latter maintains tight control to limit its commercialization.

The question that may arise is that China’s platform would definitely be a central network under the control of a national government, which could violate the principles of privacy and resistance to censorship.

According to the CryptoNews glossary, a blockchain is not always decentralized. There are private, semi-public and other networks that only a few nodes are allowed to implement, ie networks with a higher degree of centralization.



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