- McDonald’s, Starbucks, Subway and other restaurants could test the digital currency of China’s Central Bank ( Central Bank Issued Digital Currency, CBDC), known as the digital yuan.
- The test of the digital yuan is expected to be conducted in the cities of Chengdu, Shenzhen, Suzhou and Xiong’an.
A Chainnews article reported on the possibility that food industry giants such as McDonald’s, Starbucks, Subway and others could test the digital currency issued by the Chinese central bank, known as the digital yuan. The article claims to have information about a „pilot marketing meeting“ on the digital yuan in the New District of Xiong’an.
The meeting was apparently organized by the Office for Reform and Development of the Xiong’an New District Administration Committee. It is speculated that the meeting was attended by commercial companies and institutions related to the digital yuan test, including the Commercial Bank of China, Bank of Agriculture of China, and Bank of China, as well as representatives of entertainment companies and restaurants. The participants of the possible test will be mainly restaurants, food companies and other retail outlets, speculation said.
However, it remains to be seen whether this rumor proves true. To date, very little is known about the duration and features of the digital yuan test. Nevertheless, it is known that the Chinese central bank has formed a special task force to promote the digital yuan, which will work together with the administration and industry. China’s state television channel CCTV recently quoted a government official who said the cities of Chengdu, Shenzhen, Suzhou and Xiong’an New District will participate in the test.
Impact of the digital yuan on the global economy
A representative of the Chinese central bank said that the digital yuan will be different from Bitcoin. The reason is that it will not be „suitable for speculation“ and its value will not be tied to a currency pool like Facebook’s Libra. The official also confirmed that the digital yuan will be managed exclusively by the Chinese central bank.
Undeniably, the announcement of the digital yuan has had an impact on financial institutions around the world. The central banks of Japan, Korea and the European Union are currently investigating the impact that the introduction of the digital yuan could have on the global economy. In addition, they are independently developing their own CBDCs to counter the potential impact of the digital yuan.