China is planning to trial the digital yuan with foreign athletes and visitors during the Beijing Winter Olympics in 2022.
Digital Yuan For Foreign Use
Bo, who spoke at a CNBC panel at the Boao Forum for Asia, said the central bank plans to make the digital yuan available to domestic users and international athletes and visitors.
He added that more use cases would be added to test the virtual asset in due time.
This is not the first time the bank is announcing trial plans for the digital yuan at the event. The PBoC first disclosed plans to test its digital yuan at the Olympics, last year. It had conducted requisite trials of its digital currency across Shenzhen, Suzhou, Xiongan, and Chengdu at the time.
Digital Yuan Not Replacing U.S. Dollar
As China’s digital yuan race heats up, many world leaders are scared of the consequences. In the US, government officials are genuinely concerned about the potential implications of China’s CBDC program.
In response, Li Bo said the central bank was only focused on how the digital yuan could be used in the domestic economy, rather than reducing the country’s dependence on the U.S. dollar.
“For the internationalization of renminbi, we have said many times that it’s a natural process, and our goal is not to replace the U.S. dollar or any other international currency. I think our goal is to allow the market to choose and to facilitate international trade and investment,” he stated.
China is a frontrunner pushing for CBDCs. It launched its first domestic digital yuan tests in 2020 and went on to collaborate with other central banks in Hong Kong, Thailand, and the United Arab Emirates for cross-border CBDC pilot tests.