The creation of China’s central bank digital currency (CBDC) has been a steady, step-by-step journey. For a country renowned for its innovation in digital payments — a move that has been largely driven by private companies — it was perhaps inevitable that the central bank, the People’s Bank of China (PBOC), would become involved.
In 2014, the PBOC created its initial technical study group on digital currencies and electronic payments. Then, in 2017, it formally announced its research into digital currencies before beginning its first e-yuan trials in 2019. These experiments were extended in 2020 to several major cities including Shenzhen and Chengdu, with plans to conduct tests in Beijing ahead of the city hosting the Winter Olympics in February 2022.
