China has started to test its national digital currency called eCNY in some of its major cities like Shenzhen, Shanghai, and Beijing. The currency was rolled out in four major cities in the country last year. China is one of the most developed countries in terms of digital currency adoption so far, and it aims to use eCNY as an influence and standard-setter worldwide.
So far, the Chinese government has not made any official statements as to when it will roll out its official digital currency nationwide but based previous statements from officials, eCNY will be ready for tourists who will be visiting Beijing in 2022 for the Olympics.
Zoom In: Plans for the eCNY began back in 2014 when the People’s Bank of China set up an internal group to work on its own digital currency, inspired by the popularity of Bitcoin.
Zoom Out: Similarly, India is also expected to launch its own official digital currency. A short time ago the country announced that it was drafting laws that would ban all private cryptocurrencies in the country, giving investors some time to divest their holdings within the transition period. The switch to a digital currency would give these governments a stronger grip over money flow within their countries.
