China tests offline payment with digital yuan for the first time

The city of Suzhou will distribute the national cryptographic currency, playing it among local residents. They will be able to make purchases without having access to the Internet.

The Chinese government has chosen another city to test the digital yuan. On 12 December, Suzhou authorities will distribute the national cryptovalue to the residents. This is reported by the local publication The Paper.

The distribution of digital coins will be carried out in the same way as the first test in Shenzhen, the publication said. At that time, the crypt currency was distributed among the lottery participants. Each of the winners received 200 yuan (about $30) and 50,000 people received the coins.

The publication also specified that another function would be tested as part of the new profit revolution. It will make it possible to make payments offline. For this purpose, users will only need to bring two devices with digital yuan storage wallets, such as a smartphone, to a terminal.

On 11 November, Chinese authorities announced that a city-wide pilot project to test the digital yuan is planned in Beijing, which will be carried out similar to the test in Shenzhen. The government also announced that the NBK’s Digital Currency Research Institute plans to create „test areas for legally recognised digital currency“.

The exact date on which the digital yuan will be launched is unknown. But China is preparing to use the national digital currency in Beijing during the Winter Olympics, which will be held in 2022. Sun Gofeng, head of the monetary policy department at the People’s Bank of China, told us about this in October.